Govt now wants to delist 24 vanishing cos

Eight of the 24 vanishing companies are from Delhi followed by six from Madhya Pradesh, five from Tamil Nadu, three are from Gujarat and two in Orissa, it said.

The 24 companies that will be delisted from the stock exchanges are Bhavna Steel Cast, Topline Shoes, Gujarat Bonanza Auto (all Gujarat), Global Blooms (India), Navakkarai Spinners, Pappilon Exports, Shyam Prints and Publishers and Amigo Exports (from Tamil Nadu). The companies from Delhi are ICP Securities, Lakshya Securities & Credit Holdings and Hatron Networks Ltd, Star Electronics, Zed Investments, Kalyani Finance and Big Stat Films.

The other companies are Orissa Luminaries and Univeral Vital Aliments (both Orissa) and Janak Intermediaries, Rajdhiraj Ind, HiTech Drugs, Madhyavart Exxoil, Sterling Kalks and Bricks and Total Exports Ltd in Madhya Pradesh. “How will investors recover their money invested in these companies? Once the shares are delisted investors who’ve already put their money in such shares willl be stuck with that for ever. Delisting seems to be a remedy worse than the disease,” said an investor.

The government said prosecutions have been launched against the erring companies by field officers of DCA. They have been instructed to refer these companies to Regional Economic Intelligence Agencies. "Police complaints have also been launched against 24 companies," the official statement said, adding the DCA has also written to the Chief Secretaries and Finance Secretaries of concerned States for taking penal action against these companies under Investor Protection Act and Indian Penal Code.

Multi-pronged actions have also been initiated against companies which have been tracked but otherwise are defaulting on account of not filing their annual returns as also for cheating the investors. The action is being taken against them under the Companies Act, Reserve Bank of India Act and the Securities and Exchange Board of India (SEBI) Act, it said.