Floats consultation paper on limited liability partnerships
Bill in budget session on Competition CommissionCorporates asked to follow healthy disclosure norms
NEW DELHI: The Ministry of Company Affairs (MoCA) will be examining the initial public offering (IPO) scam to check whether any of the company law provisions had been violated. The scam is already under the lens of the Securities and Exchange Board of India (SEBI), the market regulator that unearthed the fraud, and the Reserve Bank of India (RBI).
Speaking to newspersons on the sidelines of a conference organised by the Associated Chambers of Commerce and Industry of India (Assocham) here on Friday, the Minister for Company Affairs, Prem Chand Gupta, said: "We are also looking at what can be done on this."
Explaining the need for investigation by the Ministry, Mr. Gupta said it would see if any of the violations were against the company law. The RBI had already booked seven banks for providing funds to fraudsters and enabling them to get huge undue allotments in the IPOs of IDFC and Yes Bank.
As for making the Competition Commission of India operational, Mr. Gupta said the Government would table a Bill in the budget session of Parliament. "It will likely be tabled in the budget session of Parliament as the Government is making certain amendments related to the selection committee, selection process and existing and future appointments," he said.
On `limited liability partnerships' (LLPs), he said the Ministry had floated a consultation paper and the issue would be referred to an advisory committee after the consultation process was over. The advisory panel would include corporate lawyers like Lalit Bhasin, and the retired Deputy Governor of RBI, S. P. Talwar.
Mr. Gupta also asked the corporate community to follow healthy corporate disclosure norms. "The financial statements should not only be made out correctly and truthfully, but they should also convey an overall fair view and should not give any misleading impression," he said.