The Parliamentary Standing Committee on Finance has summoned the Securities and Exchange Board of India (Sebi), the Bombay Stock Exchange and the National Stock Exchange for a hearing on October 18.
The panel, headed by former Lok Sabha speaker Sivaraj Patel has asked the market regulator and exchanges to furnish detailed report on an entire gamut of issues relating to the markets, foreign institutional investors, assured returns schemes of mutual funds, vanishing companies and investor grievance mechanism.
According to sources, Sebi and exchanges will submit a report to the finance ministry before appearing for the hearing.
The panel has asked for sectorwise details of companies which have raised equity from the market over the last three years and also on the detail of companies which have gone for liquidation as also vanishing companies.
It has also sought details on action taken in coordination with the department of company affairs on vanishing companies.
Sebi has been asked to brief on the additional powers that Sebi needs to prevent companies from disappearing after raising funds and also about the concurrent powers it has with DCA in respect of prosecution of companies for violation such as mis-statements in prospectus and transfer of shares.
The panel has also asked Sebi whether exercising concurrent powers is hampering investor protection.
The panel has sought information from Sebi on assured return schemes promoted by the public sector banks and also UTI's assured return schemes, which have been guaranteed by the Development Reserve Fund (DRF).
Sebi has been asked to give details on irregularities, violations detected by market regulator in the BSE.
The panel has also asked whether there exist any discrepancy in compilation of the data on FII inflow between RBI and Sebi and FII net investment in the last six years.
It has also sought a status report on the Dhanuka committee recommendations which called for more powers to Sebi.
The Dhanuka committee report was submitted to the finance ministry sometime back. However, no action has been taken based on the report.
