Financial Daily from THE HINDU group of publications
Tuesday, Oct 12, 2004
Financial Daily from THE HINDU group of publications Tuesday, Oct 12, 2004 |
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Corporate
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Regulatory Bodies & Rulings Panel to pursue cases against vanishing cos Our Bureau
New Delhi , Oct. 11 THE Ministry of Company Affairs is actively pursuing the cases relating to vanishing companies. The Ministry has set up a monitoring committee to pursue the first information report (FIR) filed against the vanishing companies and their promoters or directors. This Committee is to be co-chaired by the Secretary, Company Affairs and Chairman of Securities and Exchange Board of India (SEBI). The other members of the Committee are the Chief Secretaries of the State Governments of West Bengal, Maharashtra, Tamil Nadu, Andhra Pradesh, Gujarat and the Commissioner of Police, Delhi. SEBI's representative is to be the Committee's Member-Secretary. In its pursuit against the vanishing companies, the Ministry has involved SEBI, RBI and other concerned agencies. The capital market had witnessed a boom in 1993-94 and 1994-95 when new companies tapped the market and collected funds through public issue of shares/debentures. Some of these companies defaulted on their commitments made to public while mobilising funds. Several of these companies are not even traceable. SEBI had originally identified 229 listed companies as `vanished'. A Central Coordination and Monitoring Committee (CMC) co-chaired by the Secretary, Company Affairs and SEBI chairman was set up for taking stringent action against unscrupulous promoters, who raised money from investors and misused. The CMC is assisted by four task forces, one each corresponding to a region falling under the jurisdiction of the Regional Director of the Ministry. Of the 229 companies earlier identified as vanished, the CMC had deleted the names of 44 companies as they have been found to be now regular in filing their statutory returns.
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