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Govt makes norms stringent for incorporation of firms

New panel will identify vanishing companies and take action against them

Press Trust of India  |  New Delhi 

In order to identify vanishing with public shareholding, the government has formed a committee to monitor such firms and has made the norms stringent for incorporation of

"A Coordination and Monitoring Committee (CMC) co-chaired by secretary Ministry of Corporate Affairs and chairman 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 will also take appropriate action against such in terms of the Act and Act, he said.

"...Norms for incorporation of 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 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 presently identified as 'vanishing companies'," the minister said.

First Published: Thu, May 17 2012. 15:44 IST