Investors betting high on the equity market may have a safety valve within two months. Apart from looking at frauds in the future, it would also examine irregularities done in the past.
According to an official of the ministry of corporate affairs, who did not wish to be identified, a seven-member internal committee headed by an additional secretary of the ministry of corporate affairs (MCA) has been working to evolve a mechanism of early detection of corporate frauds.
When contacted by SundayET, minister of state (independent charge) for corporate affairs and minorities Salman Khurshid, confirmed the development and said that a system to detect corporate frauds at the initial stages would be in place in two months.
“The idea is to find out a set of parameters to identify the symptoms of fraud at its early stage so that no bigger debacle takes place at a later stage. A group of people in my ministry are already on the job,” Mr Khurshid said. He further said that the ministry would also look into past major events where there were indications of any irregularities.
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