(a) whether the Lucknow bench of Allahabad High Court ordered the Security and Exchange
Board of India to submit details of vanishing companies;
(b) if so, whether the information has since been submitted; and
(c) if so, the broad details in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANDRAO VITHOBA ADSUL):
(a) and (b) Yes, Sir.
(c) As per criteria laid down by Co-ordination and Monitoring Committee (CMC) jointly headed
by the Secretary, Department of Company Affairs, Government of India and Chairman SEBI, 185
companies have been identified as vanishing companies. The action taken in this regard is
as under:-
1) SEBI has passed orders under section 11 B of the SEBI Act against 96 vanishing companies
and 361 directors of such companies.
2) 149 prosecutions have been filed against vanishing companies/their directors.
3) Further, the public companies in which the said directors hold controliing or
substantial interest shall not be allowed to raise funds from the capital market for a
period of five years. When companies/directors are debarred, references are made by SEBI to
the state government requesting them to initiate action under applicable investor protection
act or under Indian Penal Code. The lists of debarred companies and directors are also
forwarded to other concerned agencies for appropriate action.