In a bid to regain investors’ confidence as well as redress public grievances, the government of India had initiated action against 271 in the last three years. This was disclosed by Minister of Finance andf Corporate Affairs Nirmala Sitharaman in a written reply to a question in Lok Sabha on Monday (June 24).
According to her, action has been initiated against 95 companies in 2016-17, 101 companies in 2017-18 and 75 companies in 2018-19 under various provisions of the Companies Act.
Sitharaman stated that Section 178(5) & 178(6) of the Companies Act, 2013 mandate that every company having more than 1,000 shareholders, debenture holders, deposit holders and any other security holders shall constitute a Stakeholders Relationship Committee to consider and resolve the grievances of the security holders of the company.
According to the minister, to protect the interests of small investors Securities and Exchange Board of India (Sebi) has initiated action against 22 companies under section 15-I (Adjudication Proceedings) of the Sebi Act, 1992 and against 211 companies under section 11B (Issue of Directions to Companies) of the Sebi Act, 1992.
Sebi had received (in FY 2018-19) 2,453 complaints for non-payment of dues. It resolved 2,746 complaints which include complaints related to previous years also.