87 companies untraced after raising capital via IPO

Tags: IPO, Companies
The government today said as many as 87 "vanishing" companies remained untraced at the end of last fiscal after having raised funds through initial public offerings (IPOs).

Minister of Corporate Affairs Sachin Pilot in a written reply to the Rajya Sabha said there are 238 firms in the list of 'vanishing companies'.

Of 238 firms, 151 companies have been traced (including 32 under liquidation) and other 87 remained untraced.

"As on March 31, 2012, there were 87 companies which remained untraced after having raised funds through IPO," Pilot said.

Vanishing companies are those firms which cease to file their statements of return or where, after raising capital, whereabouts of their registered office or directors are not known.

Pilot said that government has been taking action against companies and their directors which disappear after raising money from public.

He said that a central coordination and monitoring committee, co-chaired by ministry of corporate affairs chairman and market regulator Sebi monitors efforts to identify "vanishing companies" and take stock of action against them.

The minister said that government is seeking assistance of police authorities and filing FIRs.

"The committee receives feedback from all the stakeholders and makes suitable procedural adjustments on a continuing basis and carries out," Pilot said.

Besides, Pilot said that provisions in laws and rules have been made to ensure that companies raise money in a manner which is transparent, accountable and is in accordance with provision of the Companies Act and other enactments.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Modi’s big wins in Haryana, Maharashtra are major milestones

    The results of the assembly elections in Maharashtra and Haryana are pretty much on the lines of the exit polls which suggested that the BJP was going

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Purnendu Ghosh

Are we becoming way too impatient?

Too much expectation makes one impatient. We don’t like to ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture