Will the Minister of Finance
be pleased to state :
Whether the Government are considering
to have an Investors Protection Act at all India
level:
if so, the details thereof,
Whether the Union Government have
asked various State Governments to pass Investors
Protection Act in their State;
If so, the number of States which
have passed such legislation;
The details of the provisions
of this Act; and
The Government's viewpoint of
State level Investors Protection Act and all India
level Investors Protection Act?
Answer
Minister of State in the
Ministry of finance (Shri Balasaheb
Vikhe Patil)
The Securities and Exchange Board
of India (SEBI) has sent a proposal to the Government
for an Investor Protection Bill. It includes,
inter alia, safeguards against asset stripping
and siphoning of funds, provisions to award compensation
and for attachment of properties of companies
which default on payment. The proposal is being
examined in consultation with the Ministries/Departments
concerned.
On May 18, 1999, SEBI, which is the market
regulator had requested State Governments to
consider enacting legislation similar to the
Ordinance enacted by Maharashtra, Tamil Nadu,
Maharashtra and Andhra Pradesh have passed legislation
for protection of interest of depositors in
financial establishments. This legislation relates
to acceptance of deposits by financial establishments,
and include inter alia, provisions to deal with
defaults by such establishments and for attachment
of property of companies which default on return
of deposits and appointment of a competent authority
to exercise control over the monies and properties
attached.
