A large number of companies, including a few public sector enterprises, have not been filing records pertaining to their balance sheets with the Registrar of Companies (RoC) on time. In large number of cases the information provided is inadequate.
Entities, which are listed on the bourses, are mandated to announce their financial status.
Companies, which are not listed, have to file their records with the RoC. At present, there are over 8,000 listed companies.
“There is an ongoing problem of companies not filing their records on time,” Salman Khursheed, corporate affairs minister said without divulging any further details.
The ministry is also keen to push more companies to go public in a bid to improve transparency and the level of compliance while bringing more depth into the stock market. Khursheed said the issue of non-compliance would be adequately addressed once the National Law Company Tribunal — the fast track adjudication body —is set up. “Once the NLCT comes up, these cases would be taken up on a priority basis and we can then look at the enforcement issue,” Khursheed said.
A source in the ministry said that notices have been sent to the companies that have not filed their records with the RoC on time. Under the system, these companies can be prosecuted, but it is a time consuming process.
Large number of corporate cases will be shifted to the NLCT once it is set up.
The issue of non filing of records came into light when irregularities in the Indian Premiere League (IPL) franchise teams were detected.