Ministry of Company Affairs proposes inquiry into IPO scam

New Delhi, Mar 14 (UNI) The Ministry of Company Affairs proposes to look into the recent IPO scam and this enquiry would be independent of the investigations being conducted by the RBI and SEBI, the Government today informed the Rajya Sabha.

Minister of Company Affairs Prem Chand Gupta said in a written reply that the enquiry will ascertain the role played by different persons and companies involved in cornering of shares issued through IPOs of Yes Bank and IDFC through multiple applications and to enable legal action against the same under the Companies Act, 1956.

On the dual responsibility of investors, the Minister said that several classes of investors operate in Capital Markets, including institutional and corporate investors. Both kinds of investors have fiduciary and corporate responsibilities of investors which, however, would vary depending upon the stakeholders represented by them.

Keeping in view the complexities involved in capital market operations due to multiplicity of interests and stakeholders involved, regulatory institutions such as SEBI and RBI have been established pursuant to statutes that also prescribe the legal framework for regulation of the capital market in the interest of all stakeholders, Mr Gupta added.

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