New panel will identify vanishing companies and take action against them
In order to identify vanishing companies with public shareholding, the government has formed a committee to monitor such firms and has made the norms stringent for incorporation of companies.
"A Coordination and Monitoring Committee (CMC) co-chaired by secretary Ministry of Corporate Affairs and chairman Sebi has been set up to identify and monitor the state of affairs of vanishing companies," Minister of State for Corporate Affairs RPN Singh said in a written reply to the Lok Sabha today.
The CMC will also take appropriate action against such companies in terms of the Companies Act and SEBI Act, he said.
"...Norms for incorporation of companies have been made more stringent by introduction of Directors Identification Number (DIN), mandatory filing of all details of directors etc," he added further to a query whether norms for vanishing companies had been tightened in view of the multi-crore Satyam fraud and to protect the interest of small investors.
He said, "As on date 86 prosecutions have been filed against companies presently identified as 'vanishing companies'," the minister said.
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