Press Information Bureau

Government of India

Ministry of Corporate Affairs

15-March-2016 17:59 IST

Action is taken on all such cases for which action was contemplated by Government for the disposal of investor complaints. Investors’ complaints received in the Ministry of Corporate Affairs and its field offices are forwarded to the concerned companies for remedial action. In case the company fails to redress the grievance of the complainant and/or is found to be in violation of the provisions of the Companies Act, suitable action under the provisions of the Companies Act, 2013/1956 is initiated. Further, in the meetings of the ‘Investors Complaints Resolution Forum’ held in offices of Registrar of companies from time to time, complainants and representatives of companies meet and discuss to resolve investor grievances.

On receiving information about alleged illegal activities of Companies, inspections, investigations and where necessary prosecutions are carried out. Prosecution related to investors’ complaints has been launched against 73 companies in 2012-13, 66 companies in 2013-14 and 102 companies in 2014-15.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha today.

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DSM/KA

 

Investor complaint resolution enforced under Companies Act through referrals, inspections and prosecutions to secure remedial action. Investor complaints received by the Ministry and its field offices are forwarded to companies for remedial action; failures or violations lead to inspections, investigations and initiation of proceedings under the Companies Act, and the Investors Complaints Resolution Forum convenes parties to attempt resolution.