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ROCs to check for diversion of IPO funds

To check the misuse of funds raised by Companies via IPOs, the Ministry of Corporate Affairs has directed the Registrar of Companies (RoCs) to check for diversion of IPO funds while performing scrutiny of their annual accounts. MCA has asked ROCs to check for fund diversions by companies from the objectives stated in the prospectus with a special focus on related party transactions, while carrying out inspections soon after the filing of annual accounts.

 

 

 

Tags: Registrar of CompaniesROC

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