MUMBAI, July 25: The chairman of the committee on non-banking financial companies constituted by the Reserve Bank of India, AC Shah, has suggested that no body corporate -- other than those covered under the Companies Act -- should be allowed to raise deposits for plantations, holiday resorts or housing without the express approval of the central bank. "The RBI should work out appropriate guidelines to approve and monitor such deposits," Shah said while speaking at a function organised by the Forum for Free Enterprise on Thursday in Mumbai.

Shah said that finance companies -- categorised as loan and investment companies without any role in financial intermediation -- should be weeded out. This, according to him, would bring down the total number of financial companies substantially.

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