Regulatory Framework to Deal with Corporate Frauds
The Government has said that no verified information is available which indicates that the cases of corporate frauds are constantly increasing in the corporate sector in the country. However, an elaborate regulatory framework is already in place under the Companies Act, 1956 as well as the regulations of other agencies like Securities and Exchange Board of India, Enforcement Directorate, Central Bureau of Investigation, etc. to deal with corporate frauds. Giving this information in written reply to a question in the Lok Sabha today, the Minister for Corporate Affairs, Shri Salman Khurshid said that the Government is empowered to inspect the books of accounts of the companies and also to investigate their affairs under the Companies Act, 1956. He informed the House that the Ministry of Corporate Affairs has implemented MCA-21 e-Governance project which has increased the transparency as the data available in the public domain can be viewed by any person.