Skip to main content

Over 100,000 shell firm directors disqualified

By
Over 100,000 shell firm directors disqualified
In a fresh crackdown, the Ministry of Corporate Affairs directors for their association comes just a few days after around 200,000 shell companies identified for disqualification only be debarred from their but also from other companies years that more directors are under Last Wednesday, the ministry saidadecision had been taken blacklist 300,000 directors of ministry has said action would taken against some members of Chartered Accountants of of Company Secretaries of associations involved with These institutions have are being monitored.
Asource at ICAI told Business Standard that the association has identified 26 CAs and is gathering more evidence against them.
However, ICSI sources said there was no company secretary involved with shell companies, though some of them were linked to financial defaults.
"The ministry has identified 1,06,578 directors for disqualification under Section 164(2)(a) of the Companies Act, 2013 as on September 12, 2017," the government said inastatement. Under the section, these directors cannot join the board of any other company for the next five years.
The ministry is further analysing the data available with the Registrar of Companies to identify directors and the significant beneficial interests related to these entities.
"The money laundering activities performed under the aegis of these companies are also under the scanner,"astatement from the government said. Profiles of directors such as their background, antecedents and their role in the functioning of these shell companies are being compiled in collaboration with the enforcement agencies.
Serious Fraud Investigation Office (SFIO), ROCs, Department of Financial Services, Indian Banks´ Association and other departments are involved in the crackdown against defaulting companies.
Minister of State for Company Affairs PP Chaudhary said, "all the agencies concerned are handling this issue on priority.
The fight against black money shall be incomplete without breaking the network of shell companies.
Possibility of using the shell companies for laundering black money cannot be undermined."Astatement from the government said this exercise would goalong way in creating an atmosphere of confidence and faith in the system, paving the way for ease of doing business in India.
"The interest of stakeholders would be protected and the image of the country in the global business arena would substantially improve,” the government said. Recently, the MCA also issued notices to companies that are supposed to function as NBFCs but have not registered with the Reserve Bank of India.
Prior to action against defaulting companies, there were about 1.3 million companies registered with RoCs.
However, after the closure of around 210,000 companies, about 1.1 million are active.
The Business Standard, New Delhi, 13th September 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more