The Ministry of Company Affairs has developed a model First Information Report (FIR) for filing complaints with the police for serious offences by fraudulent companies. FIRs have been filed in 92 cases so far for offences punishable under various sections of the Indian Penal Code (IPC). The Ministry has taken action against the vanishing companies and their promoters or directors as per the provisions of the Companies Act, 1956.
The Securities & Exchange Board of India (SEBI) has also taken a series of measures to protect the small investors. These include strengthening the entry norms for companies accessing the primary market and making the disclosure norms in offer documents more stringent. SEBI has also changed its policy regarding primary issuances by defining the retail individual investor and reviewing the book-building guidelines.
The Ministry has launched a campaign to empower the small investors by creating an Investor Protection Cell. Besides opening field offices to redress the investors’ grievances, a new system of online filing of complaints by investors and depositors against the defaulting companies has also been launched for a prompt response to their grievances.
SMK:ls
(Release ID :7491)