120 cos face action for non-redressal of investor complaints

The Ministry of Corporate Affairs initiated action against 120 companies in the first seven months of the current fiscal for non-redressal of investors grievances.
In a written reply, Minister of State for Corporate Affairs Arjun Ram Meghwal today told the Lok Sabha that action was initiated against 420 companies in 2013-14, 2,414 in 2014-15 and 89 in 2015-16 for non-redressal of investor grievances.
The figures are based on the investor grievances data maintained by the ministry.
"The Department of Economic Affairs has stated that trading of scrips is not immediately suspended on receipt of an investor complaint for non-payment of dues to investors by listed companies," Meghwal said.

He was responding to a query on whether a number of companies in default of payment of dues to small investors are still actively trading in the stock exchanges and if so, any action is taken by the government.
Till October 31 in the current financial year, as many as 1,907 complaints were received and 1,522 were resolved, the minister noted.

In a separate written reply, Meghwal said an amount of Rs 181.90 crore, including unclaimed dividends, was credited to the Investor Education and Protection Fund (IEPF) till October 31 in the ongoing financial year.
In 2013-14, Rs 189.96 crore were credited, Rs 261 crore in 2014-15 and Rs 223.42 crore in 2015-16, he added.

"The amount credited in IEPF forms a part of the Consolidated Fund of India, from which the ministry receives a separate budgetary allocation specifically for making refunds to eligible investors whose amounts have been credited to IEPF as well as creating investor awareness as per the mandate of the Companies Act," the minister said.