Lok Sabha Question No. 1167 (UNSTARRED), answered on 2022-07-25
Subject: Protection of Small Investors
Ministry: CORPORATE AFFAIRS
Asked by: Pratima Mondal

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS LOK SABHA

UNSTARRED QUESTION NO. 1167

ANSWERED ON MONDAY THE 25 TH  JULY, 2022/

SRAVANA 3, 1944 (SAKA)

## PROTECTION OF SMALL INVESTORS QUESTION

1167. SHRIMATI PRATIMA MONDAL:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the Government proposes any scheme to promote investment in rural areas, if so, the details thereof and if not, the reasons therefor;
- (b) whether the Government has taken any steps for creating awareness and protecting small investors, if so, the details thereof and if not, the reasons therefor;
- (c) the steps taken/being taken by the Government for expeditious and proper implementation of the Companies Act; and
- (d) whether several companies have not paid dues of small investors, if so, the details thereof and the reasons therefor along with the corrective measures taken by the Government in this regard?

## 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):    Yes  Sir.  There  are  various  schemes  launched  by  the  Government  to  increase investment  in  rural  areas  of  the  Country.  Under  the  Saansad  Adarsh  Gram  Yojana (SAGY) framework, the holistic development of Gram Panchayats is envisaged through convergence and implementation of existing Government Schemes and Programmes under the administrative control of respective Ministries without allocating additional funds. A Village Development Plan (VDP) is prepared through community participation for  the  identified  SAGY  Gram  Panchayats  as  per  the  local  needs.  To  promote  the different aspects of development VDP covers human, economic, social, environmental, personal  development  activities  etc.   Activities  planned  under  SAGY  are  completed through convergence with government schemes, private organization etc.

(b): Yes Sir. As a part of the mandate provided in the provisions of the Companies Act, 2013, the Investor Education and Protection Fund Authority (IEPFA) in collaboration with partner institutes organises Investor Awareness Programmes (IAPs) across the country in rural areas through Common Service Centres e-Gov. Services India Ltd, SemiUrban areas through Nehru Yuva Kendra Sangthan, India Post Payments Bank including Post Offices and Urban areas through Professional institutes viz. ICAI, ICSI, ICoAI etc. Till date more than 65000 such programs across the country engaging 30 lac Citizens have been conducted to aware them of Do's and Don't while m aking any investment and to sensitize the participants about fraudulent and Ponzi Schemes. The IEPFA also runs awareness  campaigns  on  Doordarshan  and  All  India  Radio  Gyandarshan  including awareness scroll messages, jingles, talk shows etc from time to time. 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 conducts  programmes  for  various  sections  of  society  across  the  country.  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).  Since  2011,  SEBI  has  conducted 2,783 Regional Seminars covering around 2.51 lakhs participants till June 30, 2022 and since 2007, total 2,066 awareness programs have been conducted by SEBI recognized Investor Associations covering around 1 lakh participants till June 30, 2022.

(c) & (d) : Yes Sir. The Companies Act, 2013 (CA-13) received the assent of the President and got enacted on the 29.08.2013. Section 1 of CA-13 came into force on 29.08.2013. CA-13 contained 470 sections, out of which various sections have been brought into force in phases. Till date, all sections of the CA-13 have been notified. Sub-section (67) (ix) of Section 2 of the CA-13 and part of section 465 (Repeal and Savings) which refer to  Registration  of  Companies  (Sikkim)  Act,  1961  are  pending  due  to  ongoing consultation with Government of Sikkim. Section 178(5) & 178(6) of the Companies Act, 2013  mandate  that  every  company  having  more  than  1000  shareholders,  debenture holders, deposit holders and any other security holders shall constitute a Stakeholders Relationship Committee to consider and resolve the grievances of the security holders of the company. Action under provisions of the Companies Act has taken as and when incidences occur.

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