MUMBAI, JANUARY 24: After dilly-dallying for a long time in booking the promoters of vanishing companies, the market regulator has now virtually passed the buck to the state governments. The Securities and Exchange Board of India's central co-ordination and monitoring committee has decided to refer cases of untraceable listed companies to state governments for initiating appropriate action under Indian penal code or other state laws.Further, the committee, at its meeting held here today, also decided to refer these matters to other regulatory agencies for action from their end or to follow up with them the matters already referred earlier. The meeting was held to review the actions taken by the task forces against companies which are not complying with the listing agreement and also not physically traceable at the registered addresses. ``The latest SEBI move will delay action against vanishing companies. It's time the regulator did something concrete on vanishing firms,'' said an investor.The meeting also reviewed actions taken by the Sebi and Department of Company Affairs (DCA) in respect of such companies. The Sebi has already issued orders prohibiting entry into capital market for a period of five years against 49 companies and 142 directors of such companies so far.Further similar action or hearings in respect of another 52 companies and 306 directors are in the advanced stage of completion. Similarly, DCA has initiated various actions like prosecution for non-filing of information in respect of 93 companies and prosecution under Section 209A of the Companies Act in respect of 54 companies, Sebi said.``Further action by DCA in terms of the provisions of the act are about to be completed. Besides, identification process of several companies for which complaints have been received from the investors or their association is in process,'' it said. It may be recalled that Prime Minister AB Vajpayee had asked the regulators to take strict action against vanished companies last year.SEBI to consider Net trading todayMUMBAI: E-broking (electronic-broking or stock trading via the internet) is soon going to be a reality in India. Taking the high technology to the capital market, the SEBI will meet on Tuesday to consider giving clearance to stock trading via the internet in the country.Once the regulator clears the proposal, investors will be able to buy and sell shares directly through their computers. However, the clearance for internet trading would essentially be for order routing through a broker's filter. However, it will not be real-time basis internet trading, but almost real-time. ``There would be an agreement between the broker and the client and a limit prescribed upto which the client can trade. The client can put his order and it will go to the (exchange) mainframe via the broker's filter, so long as it is within the prescribed limit," SEBI officials said.The broker will remain responsible for the collection and payment of margins and take responsibility for the client's trade.The SEBI board would also consider clearing guidelines for venture capital firms and corporate governance among other issues. The board would also conduct a review of the capital market in the past nine months, funds mobilisation by mutual funds, the issue of volatility in the secondary markets and the progress of rolling settlements which commenced earlier this month with 10 stocks. ``Internet revolution has finally reached Indian stock markets. Even before the SEBI could finalise the norms for equity trading through internet, many broking outfits and financial institutions had firmed up plans,'' said a director of the BSE.
