The FMIG was discussing the Maharashtra Depositors Ordinance, which is in application, but which is scheduled to be tabled during the Monsoon Session of the state Legislature. Considered to be an act whose time has come, considering the large number of fraudulent investor schemes in the state, the legislation is a bold step towards regulating a largely unregulated sector.

The act has a revolutionary clause whereby properties of investor companies and the personal and benami properties ownedby owners of the companies are to be immediately attached if it is found to be defrauding its investors. It allows for imprisonment up to six years on conviction and a fine of Rs 1 lakh. Also, the act has made lucid the process to send notices to investor companies. The ordinance is already under implementation by the state since April 19.

However, as the meeting at the FMIG showed on Sunday, there are still certain clauses that could be implemented to include the other parties who are involved in the transactions. With the suggestions sent to the state government, the FMIG is hopeful that the state will include them before the ordinance is tabled in the next session.

``The act is revolutionary, but finance brokers, rating agencies etc are getting away who have to be made liable,'' said Hariram Chaudhury, president of the FMIG.

The other suggestions made by the FMIG are: all persons who set up agencies for accepting deposits from persons should be registered with the competent authorities, passports ofthe owners of such companies should be impounded and there should be a limit on the amount that can be accepted by the financial proprietorship and partnership firms. The FMIG has also urged that action has to be taken against rating agencies that give a rosy picture, as in the CRB Caps case where a triple AAA rating had been given to the company that ultimately drowned the savings of lakhs of investors.