An Inter-Ministerial Group (IMG) was constituted on 1st May, 2013 under the Chairmanship of Additional Secretary, (Financial Services) in the Department of Financial Services, Ministry of Finance for proper enforcement of regulatory framework for Non-Banking Finance Companies (NBFCs) and companies running Collective Investment Schemes (CIS) and also to suggest a coordinated approach so that the problem of unauthorized collection of deposit or money by entities is addressed. The task of the Group was to address issues for re-evaluating the regulatory framework for Multi-level Marketing Companies, Non-Banking Financial Companies and companies running Collective Investment Schemes and for safeguarding against non-recurrence of events where unregistered entities defalcate the moneis collected by these entities.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

Regulatory enforcement for non-banking finance and collective investment schemes to curb unauthorized collections and misappropriation of funds. An Inter-Ministerial Group chaired by the Additional Secretary (Financial Services) was established to strengthen enforcement of the regulatory framework for Non-Banking Finance Companies and entities running Collective Investment Schemes, to re-evaluate measures for Multi-level Marketing companies, NBFCs and CIS operators, and to propose coordinated safeguards and enforcement mechanisms against unauthorized collection of money and misappropriation by unregistered entities.