Ministry Creating Awareness About Fraudulent Companies | CORPORATE ETHOS

Ministry Creating Awareness About Fraudulent Companies

By: | December 23, 2017
fraud cos

Ministry of Corporate Affairs is creating awareness about fraudulent companies and their schemes with the objective of helping investors take informed decisions.

The awareness campaigns are done in partnership with the three Professional Institutes, namely Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI), and Institute of Cost Accountants of India (ICoAI)

Shri P.P. Chaudhary, Minister of State for Law & Justice / Corporate Affairs informed Parliament that awareness programmes in the form of audio visual programmes, are also being organised in the rural areas through Common Service Centres set up under Ministry of Electronics and Information Technology.

Financial allocation for each programme varies between Rs 25,000 to 35,000. At towns and district headquarters levels the programmes are organised through Resource persons (RPs) appointed by the Professional Institutes at a unit outlay @ Rs 5000 each. For North-Eastern states, the financial allocation for each programme is Rs 30,000/- per programme conducted by Professional Institutes and Rs 7000/- per programme conducted through RPs. The expenditure on each programme depends on the number of participants in the programme.

Investor Awareness Programmes are conducted to prevent investment in companies floating fraudulent schemes. Government has initiated action against companies for indulging in Ponzi schemes/ multi-level marketing in recent years, the Minister said.