NEW DELHI – In order to safeguard the interests of the, the government has initiated action against 95 companies in the financial year 2016-17 (Apr-Mar); 101 companies in 2017-18 and 75 companies in 2018-19 under various provisions of the Companies Act, Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman told the Lok Sabha on Monday (24 Jun).
Sitharaman’s written response was to question raised in the lower house, according to a government release.
Sitharaman in her reply stated that Section 178(5) & 178(6) of the Companies Act, 2013 mandates every company having more than 1,000 shareholders, debenture holders, deposit holders and any other security holders to constitute a Stakeholders Relationship Committee (SRC) to consider and resolve the grievances of the security holders of the company, the release said.
Meanwhile, market regulator – Securities and Exchange Board of India (Sebi) has also initiated action against 22 companies under section 15-I (Adjudication Proceedings) of the Sebi Act, 1992 in the last three years, the release said quoting the minister.
SEBI has also initiated action against 211 companies under section 11B (Issue of Directions to Companies) under the Act, the Minister added.
SEBI’s move to initiate action against companies that default on payment is a step to further safeguard small investors trading in exchanges in stocks of the companies.
The minister further informed that during the year FY 2018-19 Sebi received 2,453 complaints for non-payment of dues and resolved 2,746 complaints which include complaints pertaining to previous years also.