Lok Sabha Question No. 229 (UNSTARRED), answered on 2021-07-19
Subject: Investment in Rural Areas
Ministry: CORPORATE AFFAIRS
Asked by: Alok Kumar Suman

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 229 ANSWERED ON MONDAY THE 19 TH  JULY, 2021/ ASHADA 28, 1943 (SAKA)

## INVESTMENT IN RURAL AREAS QUESTION

## 229. DR. ALOK KUMAR SUMAN:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether it is fact that the Government has a special plan to increase investment in  rural  areas  in  the  country  including district  Gopalganj of Bihar,  if so,  the  details thereof;
- (b) whether  the  Government  has  taken  any  measures  to  spread  awareness  and protect small investors in the country including Gopalganj of Bihar, if so the details thereof and if not, the reasons therefor; and
- (c) whether the Government has amended the Companies Act in relation with the protection of investors, if so, the details thereof?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS.                                                                 (RAO INDERJIT SINGH)

(a):  There are various schemes launched by the Government to increase investment in rural areas of the Country. Government has introduced Agriculture Infrastructure Fund  (AIF)  of  Rs.  1  lakh  crore  to  promote  long  term  investment  in  agriculture infrastructure.  Apart  from  this,  Central  Sector  Scheme  for  Promotion  of  Farmer Producer Organizations (FPOs), PM Street vendor's Atma Nirbhar Nidhi Scheme and PM Formalisation of Micro Food Enterprises are also operational in Gopalganj district. To provide  loans  to  State  Governments  for  completing  ongoing  rural  infrastructure projects,  Rural  Infrastructure  Development  Fund  (RIDF)  was  instituted  by  NABARD during 1995-96. RIDF covers three broad categories, viz., (i) Agriculture and related sector (ii) Social Sector and (iii) Rural Connectivity. In Gopalganj district of Bihar, at present, 03 NABARD supported FPOs are in existence.

Contd…2/-

Credit  Flow  in  the  district  through  banking  sector  has  increased  in  2020-21  as compared to 2019-20. During the last two years Banks have provided loans for various activities under the Annual Credit Plans as under:

| Year    | Loans disbursed   |
|---------|-------------------|
| 2019-20 | Rs. 1752.68 crore |
| 2020-21 | Rs. 1998.71 crore |

During 2020-21 Gopalganj District of Bihar was identified as Credit starved district. As per the instructions of RBI, NABARD has allocated 25% of Short Term Regional Rural Bank (STRRB) & Long Term Rural Credit Fund (LTRCF) for Credit Starved District to increase ground level credit flow to these districts. An amount of Rs. 2.44 lakh was disbursed under LTRCF to Gopalganj, Bihar in the FY 2020-21

- (b): Yes Sir. The Investor Education and Protection Fund Authority (IEPFA), organises Investor Awareness Programmes (IAPs) all over India with the objective of creating awareness amongst the Investors as part of its mandate provided in the provisions of the Companies Act, 2013.  The IEPFA has partnered with various organisations viz., CSC e-Gov. Services India Ltd, Nehru Yuva Kendra Sangthan, India Post Payments Bank to organise the IAPs throughout the country (including Bihar State). The Securities and Exchange Board of India (SEBI) also undertakes investor education and awareness activities  and  financial  education  programmes  in  rural  and  urban  areas  and  also conducted programmes for various sections of society across the country including Gopalganj  district.  All  the  education  and  awareness  programs  are  free  for  the participants. SEBI also carries out mass media campaign giving relevant messages to investors through popular media (TV/ Radio/Print/bulk SMSs/Digital media/cinema). As per information provided by the Department of Financial Services, during the year 201920 & 2020-21, a total of 45 Financial Literacy Camps were organised in the Gopalganj district by Financial Literacy Counselling Centre.
- (c): Yes Sir. The Companies Act, 2013 contains provisions for protection of interests of investors, which inter-alia, include:
- (i)  Shareholders  Associations/Group  of Shareholders  have  been  empowered to take legal action in case of actions relating to mis-statements in prospectus/fraudulently inducing persons to invest money in the company. [Section 37]
- (ii) Protection of claim of an investor over unclaimed dividend etc. has been provided beyond the existing limit of 7 years. Such amounts can be claimed through Investor Education and Protection Fund (IEPF) even after 7 years. [Section 125(3)]
- (iii) IEPF account to be utilized for refund of unclaimed dividends; application monies due for refund; and promotion of investors' education, awareness etc. IEPF accounts can  also  be  utilized  for  re-distribution  of  disgorged  amount  to  identifiable  victims. [Section 125(3)]

(iv)  In case of listed companies, small shareholders (i.e. shareholders holding shares of nominal value of Rs. 20,000 or less) have been empowered to elect a director in accordance with prescribed rules. (Section 151) (v)  Provisions  have  been  made  for  prevention  of  oppression  and  mismanagement alongwith action against persons engaged in fraudulent activities. [Sections 241, 242] (vi) 'Class Action' has been provided for preventive action through orders from Tribunal. Requisite number of members and depositors may approach Tribunal for this purpose. [Section 245] (vii)  Requirement  for  offer  for  sale  of  shares  (exit  option)  to  be  given  to  minority shareholders in case of acquisition of 90% or more shares by any other company or group of persons or persons acting in concert has been provided (Sections  235 and 236). (viii) The scope of postal ballot (including electronic voting) has been widened. Certain important matters as below are required to be conducted through postal/ electronic voting  [Section  110  read  with  Rule  22  (16)  of  the  Companies  (Management  and Administration) Rules, 2014]): (A)    Alteration of Memorandum of Association /Articles of Association in certain cases; (B)   Change of registered office address; (C)    Change in objects for which company raised money from public as provided in section 13 (8); (D)    Issue of shares with differential rights; (E)    Giving of loans and investment exceeding 60% of its paid-up share capital, free reserves and securities premium account or 100% of its free reserves and securities premium account, whichever is more.

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