No. 5/13/2001-CL.V

Government of India

Ministry of Law, Justice & Company Affairs

Department of Company Affairs

 

5^th floor, `A’ Wing, Shastri Bhavan,

Dr. R.P. Road, New Delhi.

 

Dated:   2nd   July, 2001

PRESS NOTE 3/2001

 

The Department of Company Affairs receives from general public a number of complaints relating to Deposits, Mutual Funds, Collective Investment Schemes, companies in liquidation and also other investor complaints.

 

2.       The Department of Company Affairs would like to inform the general public through this Press Note that  there are four types of companies which are:

 

(a)     Banking Companies;

(b)     Non-Banking Financial Companies;

(c)     Non-Banking Non-Financial Companies (Listed); and

(d)    Non-Banking Non-Financial Companies (Unlisted).

 

The complaints relating to deposits in Banking Companies and Non-Banking Financial Companies are dealt with RBI. Investors complaints relating to Non-Banking Non-Financial Companies (Listed) are dealt with by the Securities and Exchange Board of India (SEBI). The complaints in respect of Non-Banking Non-Financial Companies (Unlisted) are dealt with by the Department of Company Affairs. The public are advised to approach these regulatory bodies for redressal of their grievances in the first instance itself. Similarly, complaints against companies in liquidation should be addressed to the concerned Official Liquidators attached to the High Courts.

 

3.       In the case of deposits from Non-Banking Non-Financial Companies, the depositors should, in the first instance, approach the Company Law Board and if the orders passed by the above Board are not honoured  then they should approach the concerned Registrar of Companies  with a certified copy of the order of CLB.

 

4.       Investors complaints of Unlisted companies are dealt with by the Department of Company Affairs. These may be, in the nature of non-registration of transfer of shares, non-refund of share application money, non-receipt of dividends, non-receipt of duplicate shares, non-issue of share certificates, non-receipt of debenture certificates, bonus shares, share certificates on conversion, after endorsement etc. On receipt of a complaint, the same is registered and number is given. The Department pursues the matter with the company and in the case of non-settlement of the complaint, the matter is referred to Registrar of Companies for prosecution. The status of the complaint is also displayed in the Website of the Department at  http://www.nic.in/dca.

 

5.       A copy of this Press Note has also been placed at the Web page of the Department of Company Affairs at the Internet Address http://www.nic.in/dca.

 

 

 

(A. Ramaswamy)

Joint Secretary to the Govt. of India