Sebi, Ministry of Corporate Affairs put efforts to clean corporate universe

Two major regulators of the corporate sector – the Union ministry of corporate affairs (MCA) and the Securities and Exchange Board of India (Sebi) – have embarked on an ambitious process of cleaning their respective jurisdictions.

While the various registrars of companies (RoCs) that come under MCA have deregistered around 100,000 companies, Sebi has designated 1,088 entities in the defunct exchanges as ‘vanishing companies’ and referred these to the ministry for further processing.

The latter term is of 1990s vintage. Many that had made Initial Public Offers of equity (IPOs) vanished after raising money. After a public interest suit by