India's humongous ordinary investors seeking to put money into various depositary schemes and doubtful its authenticity can henceforth take help from the Reserve Bank of India (RBI) initiative. The central bank's new Sachet (sachet.rbi.org.in) website attempts to list out all genuine entities and schemes in the depositary business.
Sachet, which means alert in Hindi, will enlist all such entities/schemes according to the type of business regulated by various Indian regulators. From capital market to banking, insurance to pension, and companies to housing regulators, have teamed up to enlist businesses/schemes under each of their regional offices across the States.
This is expected to streamline the search for genuine operators, while keeping away the fraudsters. As many other regulators join the bandwagon and register more such depositary schemes operating in their line of business, the mechanism is set to bolster up.
On receiving a complaint against any scheme (registered or unregistered), both the state-level regulatory offices and law enforcement agencies will act in unison. The portal will not only take down complaints, but help people track it and also subject the culprit to punishment.
"...initiating quick follow up and taking cases to logical conclusion by punishing the guilty is paramount to deter entities in future from carrying out unlawful activity," RBI chief Raghuram Rajan said at the launch on Thursday, according to PTI.
The initiative is expected to enhance coordination between the state government departments such as police and the regulators strengthening the system as a whole.
The website also has details on various regulations under each of the regulators for the entities, and even ordinary individuals to keep track of such depositary schemes.