Rajya Sabha
A central Coordination and Monitoring Committee, co-chaired by Secretary, Ministry of Company Affairs and Chairman, SEBI has been set up to look into issues relating to vanishing companies and their promoters and to monitor the progress of action taken against them. Government has taken action against the vanishing companies and their Promoters/Directors by filing prosecutions through the Registrar of Companies under Sections 62, 63, 68 and 628 of the Companies Act 1956 in respect of 107 companies out of a total of 114 vanishing companies.
In addition, FIRs have also been filed in respect of 100 companies and their Promoters/Directors for the offences punishable under Sections 420, 406, 403, 415, 418 and 424 of the Indian Penal Code.
At present 114 companies stand identified as vanishing companies with issue size of approximately Rs.799.31 crores.
Besides addressing these concerns through legislation, the Ministry is implementing an e-Governance project under which the identity of authorized directors and professionals is ensured in a secure manner.
Securities and Exchange Board of India (SEBI) has also amended the SEBI (Disclosure and Investor Protection) Guidelines to enforce higher disclosure requirements pertaining to promoters of companies.
This information was given by Shri Prem Chand Gupta, Minister of Company Affairs in reply to a question raised by Shri Vedprakash P. Goyal in Rajya Sabha today.
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(Release ID :13891)