Information regarding Vanishing Companies
I want this following application to be filed by Anonymously
Sir,
The following information regarding “Vanishing Companies” is requested under the Right to Information Act. These pertain to 604 companies list forwarded by Bombay Stock Exchange and referred by Midas Touch in its letter dated 07 October addressed to MCA as referred to in the minutes of 16th meeting of Co-ordination and Monitoring Committee (CMC) held on 05.01.2006. You are requested to furnish the following information:
1. Names and addresses of the list containing 604 companies alongwith covering letters of Bombay Stock Exchange and Midas Touch and details of examination/comments/recommendations of the following with dates:
2. Reports/examination/comments/recommendations of Registrar of Companies(ROC) and Regional Directors with the names of the companies and dates thereof.
3. Reports/examination/comments/recommendations of Bombay Stock Exchange (BSE) with names of the companies and dates thereof.
4. Minutes of the Task Forces which considered the reports/examination/comments/recommendations of the Bombay Stock Exchange, Registrar of Companies and Regional Directors and all the matters relating to these 604 companies and their recommendations to CMC.
5. Decision(s) of the CMC with dates relating to these companies.
6. Action taken by BSE, ROCs and SEBI against these (i) companies and their (ii)Directors) and (iii)Promoters.
7. Minutes of the 21st (TwentyFirst) meeting of Coordination and Monitoring Committee held sometimes between 23.04.2007 to 08.03.2010
companies are registered with RoC ( registrar of companies )
BSE is not a Public authority so BSE can’t give this reply
Sebi as my knowledge is Stock Market / Mutual fund regulator hence all vanishing companies I doubt sebi has this info
at first it will be good if definition of vanishing companies is established
first get this midas touch letter from mca
take action taken report on this letter from mca
point 4 where is is task force
point 7 ask agenda as well as minutes for meeting of 21st CMC ( certified copies )
companies are registered with RoC ( registrar of companies )
Yes. All companies have to be necessarily registered with ROC under the Companies Act. Listed companies are primarily regulated by SEBI & stock exchanges thru SEBI Act & SCR Act. Responsibility for administering/ regulation of some provisions of Companies Act, for listed companies, have been delegated to SEBI.
BSE is not a Public authority so BSE can’t give this reply
BSE is given recognition and regulated by SEBI under the Securities Contracts (Regulation) Act (SCRA). Additionally, SEBI also regulates stock exchanges thru SEBI Act. Hence, SEBI, as its regulator, can demand a reply from BSE, if it so desires. However, in the instant case, BSE’s covering letter alongwith list of 604 companies to SEBI/CMC itself may give important information.
Sebi as my knowledge is Stock Market / Mutual fund regulator hence all vanishing companies I doubt sebi has this info
SEBI has the info. Your attn. is drawn to the following SEBI letter:
Sub: Vanishing Companies.
Please refer to our earlier letter PMD/VC/DT/152/00 dated 5th January 2000 requesting to forward information on vanishing companies.
SEBI has a separate section operating under the Primary Market Department, which handles the complaints about vanishing companies and further action against the companies and their Directors.
In this connection, it may be noted that the following criteria are adopted to classify a company as a vanished company.
• (a) Companies which have not complied with listing requirements/ filing requirements of Stock Exchange/ROC respectively for a period of 2 years AND
• (b) No correspondence has been received by the exchange from the company for a long time/2 years AND
• (c) No office of the company is located at the mentioned registered office address at the time of Stock Exchange inspection.
at first it will be good if definition of vanishing companies is established
There is no legal definition of vanishing companies. However, the criteria made by CMC for declaring a vanishing company has been given above.
first get this midas touch letter from mca take action taken report on this letter from mca
Since CMC is a joint committee of SEBI, MCA and MOF officials and is required to work in co-ordination amongst themselves, piecemeal info request may allow them to stall or obfuscate the information desired. For your ready reference and info a note is given below.
point 4 where is is task force
They are at: Delhi, Mumbai, Chennai & Kolkatta. It consists of Regional Director (MCA), ROC, SEBI and stock exchange officials.
point 7 ask agenda as well as minutes for meeting of 21st CMC ( certified copies )
Thank you for the advise. I will make necessary changes.
________________________________________
NOTE: ADDITIONAL INFO
On search http://www.mtia.in, i reproduce extracts of Allahabad High Court Order of 26.02.1999 for your kind info:
“DCA has issued a circular dated December 03, 1998 to all Registrar of Companies (ROCs) and Regional Directors regarding complaints against the companies which are not available at their known addresses. It provides the ROC concerned to prepare a broad sheet in respect of such companies, after collecting information received from SEBI and Stock Exchanges. It also provides to issue default notices to such companies and their managers/directors and lodge complaint with the police authorities concerned with the Registered Office of the Company at last known address of the manager/director etc. and simultaneously to issue public notice.”
“A Co-ordination and Monitoring Committee would settle the policy issues regarding the delinquent companies/promoters and would monitor the progress in regard to the action. It was decided that seven Task Forces would assist the Co-ordination and Monitoring Committee. The focus of these groups would be to identify the companies which have disappeared or which have misutilised the funds mobilised from the public. The information filed with the stock exchanges pursuant to the requirements of the listing agreements as also the various documents/returns filed with ROCs could be the basis for initiating preliminary exercise of identifying the delinquent companies. The Task Forces would suggest appropriate action in terms of the Companies Act or SEBI Act after necessary investigations. The Secretary, DCA and Chairman SEBI would be the co-chairman of the Co-ordination and Monitoring Committee and senior officials of DCA and SEBI would be other members”.
“Now in view of the decision taken by the SEBI and DCA and the Finance Secretary Government of India, it is clear that the Central Government. Department of Company Affairs and Securities and Exchange Board of India are already seized of the matter and appropriate steps have been taken for putting a check upon the defaulting companies and to watch the interest of the investors. The work of identifying the defaulting companies has been entrusted to seven Task Forces and thereafter as soon as the defaulting companies are identified further action in the light of the decision referred to above will have to be taken. We are satisfied that the action taken and the principle enunciated therein would certainly be a step towards identifying the defaulting companies and protecting the interest of the investors regarding claim of their money. Besides this the defaulting companies and their Directors and Promoters will also be subjected to penal consequences under the provisions of the Indian Penal Code and the defaulting companies can also be subjected to proceedings under the Companies Act. At this juncture we may hope and trust that the opposite parties would abide by the decisions taken by them and would bring to notice the names of the defaulting companies as envisaged in the Supplementary Affidavit. They would also permit the petitioner and other law abiding citizens of the Society to submit a list of the defaulting companies if at all they can furnish and after such a list is submitted, action as envisaged in the Supplementary Affidavit and the decisions of the SEBI, DCA and the Finance Secretary Government of India shall be taken. With these observations the writ petition is finally disposed of.”