Mechanism to check vanishing companies
In reply to a question whether Government has any mechanism to monitor fraudulent activities of various finance, plantation, corporate houses, builders and other such companies, Government has said that the Ministry of Corporate Affairs administers only those companies which are registered under the Companies Act, 1956. In addition to the various provisions of the Act, applicable in this context, a central Coordination and Monitoring Committee (CMC), co-chaired by Secretary, Ministry of Corporate Affairs and Chairman, SEBI has also been set up to look into issues relating to companies that had come out with public issue and vanished and to monitor the progress of action taken against them. Specific criteria have been adopted for identification of such vanishing companies.
Giving this information in the Rajya Sabha today in a written reply Shri Salman Khurshid, Minister for Corporate Affairs, said that on the basis of above criteria, no company that had raised funds from public through public issue has been identified as “vanished” during the last three years.
