According to Sebi sources, it has identified about 80 companies which have vanished from stock markets and not complied with the listing agreements they signed with their respective exchanges. Sebi has already communicated to the exchanges to initiate procecution procedures under Section 21 and 23(2) of Securities Contracts (Regulation) Act.

Following the Prime Minister's promise to the nation that the rogue companies would be punished as per law, Sebi in conjuntion with Department of Company Effairs and regional stock exchanges had undertook a time bound progrmme to identify the companies those have raised funds from capital market and subsequently vanished.

Section 21 of SCR Act clearly said that the persons who are responsible for listing the securities with a recongnised stock exchange, will also obligatory tocomply with the conditions of the listing agreement. Defaulters will face the penality under section 23 of the same Act. As per the list sent to stock exchanges.