Financial Daily from THE HINDU group of publications
Wednesday, Dec 22, 2004
Financial Daily from THE HINDU group of publications Wednesday, Dec 22, 2004 |
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Corporate
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Insight Markets - IPOs `122 cos vanished after IPO in April `92-March `98' Our Bureau
New Delhi , Dec. 21 ALMOST 122 companies `vanished' after coming out with an initial public offering (IPO) during April 1992 to March 1998, said the Minister for Company Affairs (Independent Charge), Mr Prem Chand Gupta, in the Rajya Sabha on Tuesday. "A total of 4,507 IPOs had come to the market during the period. "Out of these, at present, 122 companies stand identified as vanishing companies, including two companies that made IPOs during 1990-91 and 1991-92," Mr Gupta said in written reply to a question. A Coordination and Monitoring Committee, co-chaired by the Secretary, Ministry of Company Affairs, and the Chairman, SEBI, has been set up to look into the issues relating to delinquent/vanishing companies and their promoters and to monitor the progress of action against them. Accordingly, prosecutions under Sections 63, 68 and 628 of the Companies Act, 1956 were launched against 111 vanishing companies. Besides, First Information Reports have been filed under the Indian Penal Code against the directors/promoters of 90 vanishing companies, Mr Gupta said. Mr Gupta said, "Out of 185 companies, 82 companies have responded to the notices issued by SEBI. Out of these, prosecutions under the relevant Sections of the Companies Act have been launched against 68 companies." These 82 companies have a total issue size of Rs 600 crore. The 185 `vanishing' companies have a total monetary exposure of Rs 1,150 crore.
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