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Centre to look into IPO scam

Centre to look into the IPO scam to ascertain whether any violation of Company Law provisions had taken place.

india Updated: Jan 27, 2006 16:07 IST

Centre would look into the IPO scam, already being investigated by market regulator SEBI and RBI, to ascertain whether any violation of Company Law provisions had taken place.

"We are also looking at what can be done on this," Company Affairs Minister Prem Chand Gupta said on the sidelines of a conference organised by industry chamber ASSOCHAM.

He said the Ministry would see whether any violation came under the preview of the Company Law.

The RBI has already penalised seven banks for facilitating fraudsters use bank funds to get out of place allotments in public issues of IDFC and Yes Bank. The scam was unearthed by SEBI which is also investigating the matter.

On the operationalisation of the Competition Commission of India, he said the government will table a Bill for it in the Budget session of Parliament.

"It will likely be tabled in the Budget session of Parliament as the government is making certain amendments related to the selection committee, selection process and existing and future appointments," he said.

On Limited Liability Partnerships (LLPs), for which the Ministry has floated a consultation paper, he said the matter would be referred to an advisory committee once the consultation process was over.

The committee will include corporate lawyers Lalit Bhasin, retired Deputy Governor of RBI SP Talwar.

The Minister also asked corporates to follow healthy corporate disclosure norms. "The financial statements should not only be made out correctly and truthfully, but they should also convey an overall fair view and should not give any misleading impression," he said.

First Published: Jan 27, 2006 15:13 IST