(a) whether it was reported recently in the press that Department of Company Affairs
has ordered prosecution against 13 companies for non-compoundable offences in the stock
market scam;
(b) if so, the details of the offences committed by these companies;
(c) the names of the companies and the amount involved against each company;
(d) the major recommendations of the Joshi Commission in this regard; and
(e) the recommendations implemented or proposed to be implemented by the Government?
THE MINISTER OF FINANCE AND COMPANY AFFAIRS (SHRI JASWANT SINGH):
(a) to (c) Based on inspections under Section 209A of the Companies Act, 1956,
Department of Company Affairs ordered prosecutions for offences that carry terms
of imprisonment or are non-compoundable in respect of 13 companies for violation of
provisions of Section 68, 209A(8), 372A and 628/211 of the Act. The names of said 13
companies are as under:
(1) M/s Cyberspace Ltd;
(2) M/s First Global Stock Broking (P) Ltd;
(3) M/s First Global Finance Ltd;
(4) M/s Vruddhi Confinvest India Pvt Ltd;
(5) M/s Pentamedia Graphics Ltd.;
(6) M/s Nirmal Bang Securities Pvt Ltd;
(7) M/s Goldfish Computers Ltd;
(8) M/s Nakshatra Software (P) Ltd;
(9) M/s DSQ Software Ltd;
(10) M/s Dolat Capital Market Ltd;
(11) M/s Shailesh Shah Securities Ltd;
(12) M/s Adani Exports Ltd; and
(13) M/s Rathi Global Finance Ltd.
(d) and (e) The Joshi Committee has not given any recommendations
in respect of the above matter.