Over a period from 1992 to 1998, as many as 122 companies 'vanished' after making initial public offerings of their equity shares, Company Affairs Minister Prem Chand Gupta on Tuesday told the Rajya Sabha.
"A total of 4,507 IPOs had come to the market during the period from April 1992 to March 1998. Out of these, at present, 122 companies stand identified as vanishing companies, including two companies which made IPOs during the year 1990-91 and 1991-92," Gupta said in written reply to a question.
"A coordination and monitoring committee, co-chaired by secretary, ministry of company affairs, and chairman, SEBI, has been set up to look into issues relating to delinquent/ vanishing companies and their promoters and for monitoring the progress of action against them.
"Accordingly, prosecutions under Sections 63, 68 and 628 of the Companies Act, 1956, were launched against 111 vanishing companies. Besides, First Information Reports have been filed under Indian Penal Code against directors/promoters of 90 vanishing companies," Gupta said.
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