Sebi & #8217;S Help Sought In Vanished Firms & #8217; Case

The Kanpur-based Midas Touch Investors Association has sought help of the department of company affairs and the Securities and Exchange Board of India (Sebi) to attach assets of vanished companies.

The association has filed a public interest litigation in the Allahabad High Court demanding attachment of assets of promoters, directors and companies identified as vanished by the company affairs department and Sebi.

In a letter to Vinod Dhall, company affairs department secretary, SriPrakash Jaiswal, MP and non-executive president of the association, said the Joint Parliamentary Committee which went into the Ketan Parekh share scam had suggested steps against these companies to restore investor confidence.

The House panel had suggested filing of FIR with police against these companies, a comprehensive definition of vanishing companies and initiation of assets attachment process and refund of money to investors.

According to the association, because neither Sebi, nor the company affairs department, the Company Law Board and the Reserve Bank of India are vested with powers to attach assets of any company, they should support its plea in the court. It would expedite the process, he added.