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Govt gets tough on investor protection
December 03, 2004 15:43 IST
As a part of its investor protection efforts, the government on Friday said it is taking steps to ensure accountability, under law, of all persons responsible to a public issue, in the case of vanishing companies. Measures are being taken to provide a more effective framework for accountability and responsibility of the corporates and their advisers, including solicitors and auditors, towards investors, Company Affairs Minister Prem Chand Gupta said.
The minister said that an exercise was on for a comprehensive review of the existing Companies Act, 1956. Also, bills for amendment of the Chartered Accountants Act, 1949, the Cost and Work Accountants Act, 1959, and the Company Secretaries Act, 1980 had been introduced in Parliament.
He said a total of 2,086 cases are pending with the Monopolies and Restrictive Trade Practices Commission as on November 30, 2004.
"The cases with MRTPC are pending at various stages i.e. reply, rejoinder, framing of issues, hearing of preliminary issue on maintainability, applicant's evidence, respondent's evidence and final arguments," Gupta said.
The minister said companies violating the various provisions of the Companies Act had been prosecuted.
"The number of prosecutions launched during 2000-01, 2001-02 and 2002-03 are 9,187, 8,334 and 9,154 respectively," he said.