Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

Ministry of Corporate Affairs

RAJYA SABHA

UNSTARRED QUESTION NO: 300  

TO BE ANSWERED ON 23.11.2009

Agency for IPO Monitoring Question 

300.  Shri Rajeev Chandrasekhar

Will the Minister of Corporate Affairs be pleased to state:

 (a)    whether the proposed agency called Market Research and Analysis Unit under the Serious Frauds Investigation Office (SFI) would gather data inputs on initial public offering from banks and deposit holders on the condition of anonymity;

(b)   whether the data so collected from security of the Initial Public Offer (IPO) document will be tallied with the Ministries computerised data repository;

(c)    whether Government has failed to trace 238 companies which raised capital through initial public offerings between 1992-2005; and

(d)   if so, the details thereof?

ANSWER

Minister of Corporate Affairs

(SHRI SALMAN KHURSHID)

(a)   Yes Sir.

(b)  This exercise will be done by the investigating agency wherever required.

(c)   & (d) There were 238 companies which raised capital through IPOs between 1992 to 2005, identified as vanishing companies. With the efforts of the Government, 117 companies were traced back and prosecutions under various provisions of the Companies Act have been filed against the remaining 121 companies. In addition to this, FIRs have also been lodged under Indian Penal Code (IPC) against promoters  / directors of these 121 companies who authorized the issue of prospectus.