Lok Sabha Question No. 60 (STARRED), answered on 2016-02-26
Subject: Investment Awareness Programme
Ministry: CORPORATE AFFAIRS
Asked by: ARVIND GANPAT SAWANT, ALOK SANJAR

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

LOK SABHA STARRED QUESTION NO. 60 ANSWERED ON FRIDAY, THE 26 TH  FEBRUARY, 2016 [PHALGUNA 7, 1937 (SAKA)]

## INVESTMENT AWARENESS PROGRAMME

## QUESTION

*60 SHRI ARVIND SAWANT: SHRI ALOK SANJAR:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री be pleased to state:

- (a) whether the Government is aware that small investors are being cheated in the absence of knowledge on financial matters and if so, the details thereof;
- (b) whether  the  Government  has  any  plan  to  organise  'Investor  Awareness Programmes'  in  collaboration  with  various  stakeholders  for  the  benefit  of investors including small investors of rural areas in the country, if so, the details thereof along with the objectives of the said programmes;
- (c) the details of funds allocated and utilised under the Investor Education and Protection Fund (IEPF) during each of the last three years;
- (d) the details of funds which remained unutilised during the said period along with the reasons therefor; and
- (e) the other steps taken by the Government to protect the interests of small investors?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS              (SHRI ARUN JAITLEY)

कारपोरेट कार्य मंत्री ( श्री अरूण जेटली )

- (a) to (e): A statement is laid on the Table of the House.

*****

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) of the LOK SABHA STARRED  QUESTION NO. 60 FOR 26 th FEBRUARY, 2016  REGARDING INVESTMENT AWARENESS PROGRAMME

(a): Of the various complaints received by the Ministry, some pertain to cheating of small  investors,  particularly  by  the  companies  involved  in  Chit  Fund/Multi-Level Marketing (MLM) activities. On the basis of such complaints, the Ministry has ordered investigation  through  Serious  Fraud  Investigation  Office  into  the  affairs  of  167  such companies upto 31.01.2016. Of these, investigations have been completed in 77 cases and directions to file prosecution have been given against the companies/directors/officers in 68 cases.

(b): The  Ministry  organizes  Investor  Awareness  Programmes  (IAPs)  with  the objective  of  creating  awareness  amongst  the  investors  about  fraudulent  schemes  and facilitating informed investment decisions. The IAPs are organized in association with the three  Professional  Institutes,  namely,  Institute  of  Chartered  Accountants  of  India, Institute of Company Secretaries of India and Institute of Cost Accountants of India. During the last three years i.e. 2013-14, 2014-15 and 2015-16 (upto 31.01.2016), 6209 such programmes have been organized. Besides, 286 programmes were also organized in rural areas during the same period through Common Service Centers set up under Department of  Electronics  and  Information  Technology.  In  addition,  the  Securities  and  Exchange Board  of  India  also  conducts  various  investor  education  and  financial  education programmes across the country covering all States and UTs.

## (c) & (d): The  details  of  funds  allocated,  utilized  and  surrendered  during  the  last three financial years are as under:-

| year    | Funds allocated (Rs.)   | Funds utilized (Rs.)          | Funds unutilized (Rs.)                                                                                  |
|---------|-------------------------|-------------------------------|---------------------------------------------------------------------------------------------------------|
| 2013-14 | 4,50,00,000             | 4,38,10,000                   | 11,90,000 (residual unspent balance)                                                                    |
| 2014-15 | 3,00,00,000             | 2,84, 24,000                  | 15,76,000 (due to ceiling on incurring expenditure upto 15% of the budget estimates during March, 2015) |
| 2015-16 | 4,50,00,000             | 4,32,26,345 (upto 01.02.2016) | Current financial year is not over yet.                                                                 |

- (e): With a view to spreading awareness amongst investors, jingles are aired on All India Radio, print media campaigns are undertaken through Newspapers and messages are  scrolled  over  various  T.V.  channels.  Besides,  Companies  Act,  2013  incorporates various  measures  to  protect  the  interest  of  investors  including  stringent  provisions relating to acceptance of deposits by companies, strict norms for corporate governance, increasing application of technology for early detection of frauds through data analysis surveillance and usage of forensic tools etc.