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DCA orders enquiry against 14 more firms

Puja Mehra

J M Morgan Stanley Securities, J M Morgan Retail Services, Silverline Industries Ltd, Arihant Exim Scrip, Cyberspace Ltd, Aftek Infosys Ltd, Dow Jones Investments and Investments Consultancies and Credit Suisse First Boston (I) Securities are among the 14 new companies against which the Department of Company Affairs (DCA) had recently ordered a probe.

In an official release on July 26, the department said it had ordered an inspection into the books of accounts of 14 more companies that were named by Securities and Exchange Board of India in its preliminary investigation report on the capital markets scam in March this year.

Other companies against which probes have been ordered are Monesh Consultancies Ltd, Moncon Investment, Profile Investment, Manmandir Estate Developers, Tripoli Consultancy Services and SSL Ltd.

The department had earlier ordered a probe against 79 companies, including Rathi Global, Anand Rathi Securities, Navaratan Capital & Securities, Rathi Capital & Services, Suresh Rathi Securities and Hitkari Finvest Pvt Ltd, which belong to the Anand Rathi group.

HFCL, Zee Telefilms, DSQ Software, Amar Raja Batteries and First Global Finance are also being scrutinised for alleged involvement in the scam that rocked stock markets immediately after the Budget this year.

Top government officials told Business Standard that the department is investigating if any provisions of the Companies Act, 1956 had been violated by any of these companies.

While they refused to associate the probes with the current joint parliamentary committee inquiry into the stock scam, it is understood that the move is an immediate result of the stricture by the JPC against DCA for its tardiness in bringing the guilty to book.

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