Press Statement on MPID - KiritSomaiya.com

INVESTORS’ GRIEVANCES FORUM
SEBI Regn. No. : IGG/SM/3179/2000
President : Dr. KIRIT SOMAIYA
Ex-MP, F.C.A., Ph.D.
<strong>Press</strong> <strong>Statement</strong> issued by Dr. Kirit Somaiya, Vice President, BJP
Maharashtra & President, Investors’ Grievances Forum on Mumbai
High Court decision to repeal MPID Act.
The Central & State Govt. must collectively work together and take concrete
steps to protect the small investors, rather than keeping mum and play the role
of mere spectators, demands Kirit Somaiya. With the decision of Mumbai High
Court to repeal the MPID Act, the protection and safety of not only 10 lakh
investors of Maharashtra but of about 50 lakh investors from all over India,
whose investments have been duped by various fraudulent companies and
promoters and who have suffered great losses, is in dark. Central
Government, RBI & SEBI are not using their powers and authorities effectively
to safeguard the interest of small investors, while State Governments by
enacting the Protection of Depositors Act, have acted beyond their powers due
to which small investors are compelled to face this day.
Dr. Kirit Somaiya has demanded time of 12 weeks to file and appeal against
this decision of High Court in Supreme Court, or else more than 100 cases
registered under this Act will stand cancelled, all allegations against the
accused companies will be rejected and all properties of promoters seized
under the Act will be released, due to which interest of more than 4 ½ half
investors will be hurt. IGF has discussed the issue with officials and
bureaucrats of State Governments for safeguarding the rights and interests of
investors. State government has two options – either go to Supreme Court and
get the decision of High Court repealed or else come out with a new
legislation.
Small Investors’ Protection Act was enacted under the directives of Central
Finance Minister at the behest of RBI. Considering it to be an idol act, Central
Govt. and RBI had at several occasions advised the state govt. to implement
the similar kind of act in their states.
Central Govt., RBI and SEBI are the founders of the Act and still why they
were not made a party during the hearing of High Court, questions IGF.
Dr. Somaiya demands that the state govt. shall immediately form a
Special Cell of Govt. Officials, Experts & Authorities of Law,
Representatives of Investors’ Association, RBI, SEBI and Finance
Ministry.
State Govt. must consult the Central govt. on this issue and seek their
necessary help. Central Home Minister & Finance Minister must immediately
call a consultative committee meeting of representatives from RBI, SEBI and
all the states where this law is in place.
Neelam Nagar, Mumbai-400081 Tel: 25644151 Fax: 25647432 email: igfmumbai@vsnl.net; www.igfindia.org

INVESTORS’ GRIEVANCES FORUM
SEBI Regn. No. : IGG/SM/3179/2000
President : Dr. KIRIT SOMAIYA
Ex-MP, F.C.A., Ph.D.
Due to such harsh decision of Mumbai High Court, similar enactments in other
states are feared in dark. IGF shall soon be meeting the officials of RBI, SEBI
Central Finance Ministry, Central Home Ministry on this issue.
Summary of Cases Regd. Under MPID upto March 2002
PRESS SECRETARY
Year
Cases Extent of
property
involved
(in Rs. Cr.)
If property
attached,
approximate
value (in Rs. Cr.)
No. of
depositors
/Investors
1997 6 33.24 12.09 3400
1998 8 22.96 6.17 2865
1999 27 586.70 198.05 55876
2000 19 119.23 21.05 14594
2001 12 83.02 1.61 9161
2002 2 1.24 24.26 842
UPTO MAR
2002
74 846.39 263.23 86738
Neelam Nagar, Mumbai-400081 Tel: 25644151 Fax: 25647432 email: igfmumbai@vsnl.net; www.igfindia.org