Tightening penal provisions against violations, the Companies Amendment Bill, 2003, empowers the central government to attach bank accounts of erring companies.

The government can also attach bank accounts of individuals associated with the securities market in violation of the law.

As per provisions of the Bill, which was introduced in Parliament in the Budget session, the Centre may attach for one month bank accounts of individuals, intermediaries or any person associated with the securities market in any manner involved in violation of any provisions of the Companies Act.

However, the law empowers the Centre to attach only those accounts which are found to be actually involved in violation of the measure.

The Centre can attach such accounts for maximum of one month and do so only on the order of a First Class Magistrate.

These provisions have been incorporated in the Bill in accordance with the suggestions made by the Naresh Chandra Committee on Corporate Audit and Governance, which submitted its recommendations earlier this year to the Department of Company Affairs.