“Vanishing companies” can only be listed companies; so far 161 “vanishing companies” have been traced

The Coordination and Monitoring Committee (CMC) has been constituted for those listed companies which had vanished after public issue during the years 1992 to 2005.  Out of the 238 listed companies identified as “Vanishing Companies”, due to the efforts of the Ministry and law enforcement agencies, 161 such companies have been traced and 77 more companies are still in the list of Vanishing Companies. Action under the Company law as well as Criminal Law are under progress against such companies, their Directors/Promoters.

The companies that were struck-off the Register under Section 248 of the Companies Act, 2013 are not listed companies.  Therefore, they do not come under the purview of the definition of “Vanishing Companies”.  The Regional Stock Exchanges have been closed under the Orders of the Securities and Exchange Board of India (SEBI), which does not affect the status of the companies listed therein, except as per procedures/orders of SEBI.

The Coordination and Monitoring Committee (CMC) is still active and its 30th meeting was held on 11.07.2017.

This was stated by Shri P.P. Chaudhary, Minister of State for Corporate and Law & Justice in Rajya Sabha.