RAJYA SABHA
As per the criteria adopted, 229 companies were originally identified as vanishing companies, out of which 115 companies, having issue size of approximately Rs.480 crore, have been deleted from the list of vanishing companies, as these companies were found to be outside the criteria adopted for terming a company as vanishing. However, these companies have been kept on the watch list to keep a close watch on their conduct with reference to compliance with the provisions of the Companies Act 1956.
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 Registrars of Companies under Sections 62, 63, 68 and 628 of the Companies Act, 1956 in respect of 107 out of a total of 114 companies, which remain identified as vanishing companies as on date.
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.
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 secured 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, besides taking punitive action in a number of cases.
This information was given by Shri Prem Chand Gupta, Minister of Company Affairs in reply to a question raised by Shri Nandi Yellaiah in Rajya Sabha today.
BY/AN
(Release ID :14168)