Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: cpt :: form 3cd :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Income tax dept notifies amendments for sharing taxpayer information
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya

Govt set to scrutinise end use of public issue funds
October, 25th 2006
About 100 corporates who raised money from the public in the recent past will soon have to explain to the government how they have used the funds.

Company affairs minister Prem Chand Gupta has asked the registrar of companies (RoCs) to scrutinise all public issues of more than Rs 50 crore to ensure that the funds raised have been used for their stated purpose. The scrutiny will apply to all companies that raised money since January 2005.

A large number of companies, including Jet Airways, GMR, Deccan Aviation, Suzlon Energy and Reliance Communication, have raised money from the public during this period, and the issue size in most cases is above Rs 50 crore. The ministrys intention is to prevent fly-by-night companies taking investors for a ride when the economy is booming, as has happened in the vanishing companies episode earlier.

The idea is not to pose any hardship to the corporate sector, but to ensure a fair and transparent compliance regime under which corporates can grow without any hassle. Protecting the interests of investors, particularly the small investors, is essential to strengthen their faith in the equity market, said Mr Gupta.

The Companies Act as well as Sebis Disclosure and Investor Protection Guidelines of 2000 prescribe the disclosure requirements for raising funds from the market.

Officials said not using the funds for their stated purpose will attract company law provisions dealing with mis-statement, diversion of funds and inducement. The violations impose civil as well as criminal liabilities on the promoters and directors of the company.

Mr Gupta said the regulatory regime is moving towards greater transparency and self-regulation. The new company law would emphasise on these two aspects, he said. This is in line with the JJ Irani committee on company law, which advised the government that the onus of ensuring the legitimate end-use of funds should be on shareholders.

Corporates have to put in place a mechanism for shareholders, lenders and government agencies to access financial information in a non-intrusive manner.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions