Tuesday, July 27, 2010

Law soon to protect investors: Isaac

THIRUVANANTHAPURAM: The government proposes to enact a comprehensive law to protect investors in private investment and money lending institutions, Finance Minister T.M. Thomas Isaac told the Assembly on Tuesday.

Responding to a calling attention motion from V.K. Ibrahim Kunju (IUML), the Finance Minister said the government would also initiate steps to ensure that private micro-finance outfits do not dupe the public or become a threat to the Kudumbasree Mission.

The Commercial Taxes Department would conduct investigations into the functioning of money lending institutions to see if they functioned with licences and within the ambit of the law, Dr. Isaac said. The Finance Minister said there was some ambivalence as to whether it was for the Reserve Bank of India (RBI) or the State government to monitor and control the activities of such movements.

The State government could initiate action against money lenders who functioned without licence. But in the case of micro-finance outfits, there was no such clarity.

Dr. Isaac said there was need for a political consensus on tackling the proliferation of micro-finance ventures in the private sector.

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