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SEBI debars 62 directors of 'vanishing companies'

The Securities and Exchange Board of India has put into effect an order debarring 62 directors of companies, which mobilised deposits from the public but later vanished.

A SEBI release stated that eight directors of other vanishing companies, who had filed an appeal with SEBI have been given a personal hearing to present their case.

SEBI will pass a final order on them, once the hearing process is completed. The details of all the directors is available on the SEBI Website.

The order envisages that the directors will not be able to raise resources from the capital market or deal in securities in any manner, and restricts their association with any capital market intermediary.

Meanwhile, based on the finding of a taskforce, the Department of Company Affairs has initiated inspection against 25 companies and this process is at an advanced stage for 12 other companies.

Various prosecutions have been launched against 43 companies by the DCA. The Registrar of Companies has informed the police about cases where cheating is suspected.

The stock exchanges are also initiating action like issue of notice of prosecutions for failure to comply with listing provisions, winding-up petitions and transferring the companies to special categories in terms of provisions of the listing agreement.

UNI

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