The
Ministry of Corporate Affairs has received complaints against certain companies
for allegedly defrauding investors by offering high returns. Giving this
information in written reply to a question in the Lok Sabha recently, Shri
Sachin Pilot, Minister of Corporate Affairs, said that during
the last three years and the current year, the Ministry has ordered
investigations into the affairs of 125 such companies under sections 235/237 of
the Companies Act, 1956 mostly through the Serious Fraud Investigation Office.
He said that his Ministry has already taken various steps to curb such
malpractices, such as:
(i)
The Minister has requested Chief Ministers of the States to issue instructions
to State Police Authorities for taking vigorous action under the Prize Chits
and Money Circulation Schemes (Banning) Act, 1978.
(ii) The
Minister has also written to the Hon’ble Finance Minister to increase the
surveillance by RBI over unauthorized NBFCs.
(iii) Undertaking investor awareness programmes in
association with the Institute of Chartered Accountants of India, Institute of
Company Secretaries of India and Institute of Cost Accountants of India,
specifically targeting investors in tier II and tier III cities.
(iv)
Publication of a comprehensive guide in English and two smaller booklets
in English, Hindi and 11 vernacular languages for use of investors. These booklets are distributed to all
investors participating in the investor awareness programmes.
(v) Issue of multi-lingual print media
advertisements from time to time to caution the investors about fraudulent
investment schemes.
(vi) Undertaking media campaigns through DD News
Channels and Regional Kendras of Doordarshan.
(vii)
Publishing a brief investors’ awareness message on Post Office Savings
Bank Passbooks.
(viii) A system of sending bulk SMSs introduced
cautioning investors to be careful while making investments.
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KKP