New Delhi (PTI): The government on Monday asked the investors planning to put their money in IPOs to check with the Ministry of Corporate Affairs on issues like the promoters’ track record and regulatory compliances. Investors should verify the track record of the company and its promoters, compliance status with various regulations and whether any of its officers had been found guilty of economic offence, the Ministry of Corporate Affairs said.Similar alerts were earlier issued by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), who had warned the investors not to be swayed by fraudulent tips and stock recommendations promising high returns.
Issuing the public interest advertisement today, the ministry said the information needed to make an informed decision for IPO investments is available with itself and investors could access them on its own as well as some other investor-focused government websites.
The ministry said information like master data of companies, details on director and documents like annual returns and balance sheets as well as a list of vanishing companies are available on its website.
It said that in order to get an overview of the company, investors should compare the financial results and performance of the company over the last 3-5 years.
“The decision should not be driven by sectoral boom alone,” it said, adding that a company’s performance does not necessarily relate to the sector or entire economy trend.