By IANS,
New Delhi: The government has an elaborate mechanism to trace companies that “vanish” after raising money from the public, Corporate Affairs Minister Salman Khurshid said Monday.
A central Coordination and Monitoring Committee (CMC) has been set up to look into such cases, he told the Rajya Sabha.
The committee will be co-chaired by the secretary at the corporate affairs ministry and the chairman of the Securities and Exchange Board of India (SEBI).
Replying to queries from members whether any mechanism existed to monitor fraudulent activities of companies, the minister said his ministry administered only those companies which are registered under the Companies Act, and had a monitoring mechanism to identify these.
Khurshid, however, added that no company that had raised funds through public issue has been identified as “vanished” during the last three years.
Earlier this month, the ministry had identified 121 companies that got listed on the country’s stock exchanges in the 1990s and then disappeared along with the public’s money.
The government has launched legal procedures against more than 100 such firms.