Fraud Companies
to be watched out
Decade of 90's saw
a huge boom for the initial public offers. In the period of
1993-98 many companies collected the money from the investors
and simply stopped the operations. There is no correspondence
with stock exchange. There are no communication
acknowledgements and a lot of complaints are pending against
these companies. Many of these companies were delisted from
the stock exchanges. Nobody knows whether these companies are
in operation or not. Those which are not delisted are on the
verge of getting themselves delisted. There were some
companies which were also genuine but it is difficult to
really identify those which were genuine and which were not.
It is advisable that the forensic procedures be followed
before entering into any type of financial transactions with
these companies or their promoters. Get the following things
checked from the forensic accountants
-
Why was the
company delisted from the stock markets
-
Whether it has
committed some crime/fraud
-
What amount was
raised by the company through IPO's.
-
Do the company
have any nexus with any other companies
-
Who were the
promoters of the company ?
The companies
which came into trouble because of unforeseen future and never
had the intentions to deceive Indian Public will be left with
nothing and logically they should not be in the position to
invest.It is quite possible that these companies would start
some other business with the money which they raised from
Indian public if they have siphoned out the public money.
There are
somewhere around 600 plus companies where the investors must
have lost whopping Rs. 3000 crores. Average Rs. 5 crores on
each company is lost by the Indian Investors.
Click here for
detailed List
of the companies which have found the place
in some kind of dirty work.
