DCA empowers SEBI to punish errant cos
PRESS TRUST OF INDIA

OCT 5: The Department of Company Affairs (DCA) today conferred Securities and Exchange Board of India (SEBI) powers to punish companies for non-issue of shares, non-payment of dividend, mis-statements in prospectus and non-issue of prospectus.

The power to punish errant companies, which so far was done by DCA only, would from now be exercised "concurrently" by both the department and SEBI.

"The power of the Central Government vested in the DCA so far has also been vested in SEBI by a notification," an official communique said.

The DCA, superceding an earlier notification of 1997, has issued a notification under Section 621 of the Companies Act of 1956, conferring the power on 12 SEBI officials for cracking the whip on errant companies.

The SEBI members conferred the above power are -- A Chandra Sekhar Rao, Sharad Bansode, K R C V Seshachalam, Sudip Bandyopadhyay, D Rajesh Kumar, Krishnanand Raghavan, Jayanta Jash, Biju S, Amit Pradhan, Sharad K Sharma, Barnali Mukherjee and G V Chitra.

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