Govt identifies 114 vanishing companies
Government has identified 114 firms as "vanishing companies" which disappeared with investors' money totalling Rs 799.31 crore, the Lok Sabha was informed on Friday.
By PTI |
NEW DELHI: Government has identified 114 firms as "vanishing companies" which disappeared with investors' money totalling Rs 799.31 crore, the Lok Sabha was informed on Friday.
Prosecutions have been filed against 107 companies and their promoters and directors under the Companies Act, 1956, and against 94 other companies for non-filing of Statutory Returns, Company Affairs Minister Prem Chand Gupta said.
In addition, FIRs have also been filed against 102 companies and their promoters and directors for the offences punishable under the Indian Penal Code (IPC).
"A large number of investors have suffered due to the vanishing companies," he said.
However, the exact number of these investors was not ascertainable in view of frequent change by way of transfer of shares.
A Central Coordination and Monitoring Committee, co-chaired by Secretary in Ministry of Company Affairs and SEBI Chairman has been set up to look into the issues relating to vanishing companies.
Securities and Exchange Board of India has also tightened guidelines to enforce higher disclosure, besides taking punitive action in a number of cases. SEBI has also debarred 100 companies and 378 directors under the SEBI Act from raising money from the capital market in any form for five years.
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