The Department of Company Affairs said on Wednesday that it has set up a five-member task force to initiate action within six months on the recommendations of the report of the Joint Parliamentary Committee on the stock market scam in 2001.

The task force under the chairmanship of joint secretary Rajiv Mehrishi would identify the 'actionable points' in the JPC report and take necessary action within the stipulated time of six months, an official release said in New Delhi.

This comes close on the announcement made by Securities and Exchange Board of India that it had set up a deadline of one year by which it would implement all the recommendations made by the JPC.

"Keeping in view certain observations made in the report which will require coordination and interaction with other departments, DCA would undertake a process of dialogue to facilitate compliance of such recommendations," it said.

In its report, the JPC had noted that strict and extensive actions had been taken by the DCA during its scam related inspections and against vanishing companies.

DCA had initiated prosecutions against 539 companies involved in the scam.

It also noted that DCA did not have the adequate regulatory powers and these need to be strengthened.