Financial Daily from THE HINDU group of publications
Saturday, Jul 30, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 30, 2005 |
|
|
|
|
|
|
|
Money & Banking
-
NBFCs Returns filed by nidhis to come in for closer scrutiny Richa Mishra
New Delhi , July 29 DEFAULTING nidhi companies may find the going tough, with the Ministry of Company Affairs considering closer monitoring of such entities. Taking its initiatives of protecting small investors interest a step further, the Ministry has decided to direct its regional offices to scrutinise the returns filed by nidhi companies. According to an official source, despite stringent parameters set by the Government, the Ministry continues to receive depositor complaints against the defaulting entities, including the Chennai-based RBF Nidhi. This has prompted the Ministry to revisit the existing norms and strengthen the enforcement machinery to effectively deal with defaulters. The Minister for State for Company Affairs, Mr Prem Chand Gupta, had earlier indicated that tighter norms to monitor nidhis are in the offing. As per the information available with the Ministry, as on March 31, 2005, there were 244 nidhis after adding almost 20 companies that the Government had declared as nidhis. Of them, more than a dozen were from Tamil Nadu. The Ministry has been collecting information from various sources, including the Company Law Board (CLB), southern region, on the cases where the nidhis have defaulted. According to sources, though several short, medium and long-term measures have already been taken including prompt action on investors' grievances by nominating nodal officers in every registrar of companies' and regional directors' office, it has been found that a lot still needs to be done on the issue. Besides reconstituting the board of RBF Nidhi, the Ministry has recently taken a proactive measure in another non-nidhi company, Morepen Laboratories Ltd by appointing two Government-nominee directors on its board. Morepen had defaulted in repayment of the fixed deposits. The Government had received petition from more than 75,000 depositors. The nidhis that have defaulted include Kuber Mutual Benefits Ltd, Trikone Mutual Benefits, Ican Mutual Benefit and Alwarpet Benefit Fund. Further, it has been brought to the Ministry's notice that despite the CLB's orders, there are instances of default by such entities. In fact, nidhi companies play a vital role in the southern region and the fate of lakhs of small investors is associated with these entities. The Ministry is awaiting the report of the expert group constituted to review working of such companies.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|