Ministry of Corporate Affairs initiated action against 107 companies on investor complaints

NEW DELHI: The Ministry of Corporate Affairs today said it has initiated action against 107 companies in the past three financial years with regard to investor complaints against them.

Replying to a query, Minister of Corporate Affairs (MCA) Veerappa Moily, said the in Lok Sabha that his ministry has initiated action against 19 companies in 2009-10, 49 in 2010-11 and another 39 in 2011-12.

Besides, he said capital market regulator Sebi takes up cases of non-payment of dividend/interest on securities listed on the stock exchanges. In case a company fail to pay dividend it faces action under sections of Sebi Act.

The Minister further said in the last three fiscal years Sebi has taken actions in 62 cases against various companies for non-redressal of investor grievances.

In addition, he said the government has taken several measures for awareness and protection of small investors.

Elaborating on the awareness measures, Moily said investor awareness programmes were conducted by MCA in partnership with the three professional institutes--Institute of Chartered Accountants of India ( ICAI), Institute of Company Secretaries of India and Institute of Cost Accountants of India.

The programme includes distribution of booklets whose content is available on the website of MCA and Sebi indifferent languages across various cities and small towns in the country.

"These (measures)have brought awareness among the common investors," Moily said.

Besides, MCA and Sebi have also provided facilities to lodge investors' complaints in the form of an electronic platform.