The Government has said that it wants to strengthen the enforcement mechanism against corporate frauds in the country. The proposed Companies Bill, 2009 provides for more stringent provisions in case of fraudulent activities by companies, their directors, auditors etc., and seeks to better regulate related party transactions, impose restrictions on non-cash transactions, prohibits insider trading, forward dealings in securities and special loans to directors.
The Vepa Kamesam Committee constituted by the Government to examine various issues relating to Serious Frauds Investigation Office (SFIO) and to suggest statutory, administrative and organizational changes for improving the effectiveness and to ensure efficient discharge of duties by SFIO, has submitted its report and this is under consideration.
This information was given by Shri Salman Khurshid, Minister for Corporate Affairs, in the Rajya Sabha.
