Investor Education and Protection Fund
Based on information provided by Securities and Exchange Board of India (SEBI) there have been 3 public issues of Debt Securities under the SEBI (Issue and Listing of Debt Securities) Regulations 2008 in the period 2008-09 (one) and 2009-10 (two) till date. Giving this information in the Rajya Sabha today in a written reply Shri Salman Khurshid, Minister of Corporate Affairs, said that no complaints of misleading investors have been received in connection with these issues. The details of public/rights issues where complaints were received alleging misleading disclosures in the draft offer document in respect of issues and the action taken by SEBI during 2008-09 and 2009-10 is given below:
|
Sl. No. |
Name of Issue |
Pre-issue/post issue |
Action taken/status |
|
2008-09 |
|||
|
1. |
Gokul Refoil and Solvent Limited |
Pre-issue |
Merchant banker advised to reply to the complainant and advised to make disclosures in the offer document. Merchant banker replied to the complainant. |
|
2. |
Chemcel Biotech Limited |
Pre-issue |
As above |
|
3. |
Edserv Softsystems Limited |
Pre-issue |
As above |
|
4. |
First Winner Industries Ltd |
Pre-issue |
As above |
|
Post issue |
Merchant banker advised to reply to the complainant. Merchant banker replied to the complainant. |
||
|
5. |
Niraj Cement Structurals Ltd. |
Pre-issue |
Merchant banker advised to reply to the complainant and advised to make disclosures in the offer document. Merchant banker replied to the complainant. |
|
6. |
Austral Coke & Projects Ltd |
Post issue |
Merchant banker advised to reply to the complainant and advised to make disclosures in the offer document. Merchant banker replied to the complainant. Complaint also taken up for investigation. |
|
7. |
Gini & Jony Ltd. (Issue not opened) |
Pre-issue |
Merchant banker advised to reply to the complainant and advised to make disclosures in the offer document. Merchant banker replied to the complainant. |
|
2009-2010 |
|||
|
1. |
DEN Networks Ltd. |
Pre-issue |
Merchant banker advised to reply to the complainant and advised to make disclosures in the offer document. Merchant banker replied to the complainant. |
|
2. |
Indiabulls Power Ltd. |
Pre-issue |
As above |
|
3. |
NHPC Limited |
Pre-issue |
As above |
|
4. |
Pipavav Shipyard Limited |
Pre-issue |
As above |
|
5. |
Cox & Kings(I) Ltd. |
Pre-issue |
As above |
|
6. |
Euro Multivision Ltd. |
Pre-issue |
As above |
|
7. |
Jindal Cotex Ltd |
Pre-issue |
As above. |
Shri Salman Khurshid also informed the House that an Investor Education and Protection Fund (IEPF) has been set-up under Section 205C of the Companies Act, 1956 by way of the Companies (Amendment) Act, 1999. As per the Act, the following amounts, which have remained unclaimed and unpaid for a period of seven years from the date they became due for payment, shall be credited to the IEPF:
a. Unpaid dividend accounts of the companies;
b. The application moneys received and due for refund;
c. Matured deposits;
d. Matured debentures;
e. The interest accrued in the amounts referred to (a) to (d) above;
f. Grants and donations by the Central Govt., State Govt., companies or any other institutions;
g. The interest or other income received out of the investments made from the Fund.
The objectives of the Fund are:
i) Educating investors about market operations;
ii) Equipping investors to analyze information to take informed decisions;
iii) Making investors aware about market volatilities;
iv) Empowering the investors by making them aware of their rights and responsibilities under various laws;
v) Continuously disseminating information about unscrupulous elements and unfair practices in securities market;
vi) Broadening the investors’ base by encouraging new investors to participate in securities market; and
vii) Promoting research and investor surveys to create a knowledge base to facilitate informed policy decisions
