19 May 2012

Vanishing Companies

A Coordination and Monitoring Committee (CMC) co-chaired by Secretary MCA & Chairman SEBI has been setup to identify and monitor the state of affairs of Vanishing Companies and to take appropriate action against such companies in terms of Companies Act, 1956 and the SEBI Act, 1992. As on date 86 prosecutions have been filed against companies presently identified as ‘Vanishing Companies’. 

With the companies (Amendment) Act, 2006, norms for incorporation of companies have been made stringent by introduction of Directors Identification Number (DIN), mandatory filing of all details of directors etc. 

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in the Lok Sabha today in reply to a written question whether the Government has directed the Registrar of Companies in the State to identify vanishing companies with public share and start legal proceedings against them and whether the Government and Exchange Board of India (SEBI) have jointly suggested tightening norms for vanishing companies following multi crore Satyam fraud and to protect the interest of small investors. 

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