In your interest.
Online Personal Finance Magazine
No beating about the bush.
A majority of investors, who would like to research companies before investing their hard earned money struggle to find credible information on government websites, since it is not published in an easily accessible and searchable format.
This is where services offered by watchoutinvestors.com come handy.
Watchoutinvestors.com is a database on the regulatory actions taken by a slew of regulatory agencies against companies and market intermediaries, and corporate decisions to change their name or objects. It was started with the sole objective of benefitting investors by making information about regulatory action available in the public domain.
It was set up in 2003 with support from the Investor Education and Protection Fund and over the next 15 years has grown into a giant resource, comprising data of 4.08 lakh entities, including 2.43 lakh corporate entities and 1.64 lakh unique individuals. It is today a must-use tool for serious researchers and investors in the capital market; as also for regulatory agencies who are often clueless about actions by other regulators, or the previous names and avatars in which companies existed under the head ’name changes'.
Watchoutinvestors.com covers 35 regulators, ministries and government authorities, including Association of Mutual Funds of India (AMFI), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Central Board of Excise & Customs (CBEC), Central Bureau of Investigation (CBI) and Institute of Chartered Accountants of India (ICAI) among others.
The portal also tracks actions like arbitration award, easy exit scheme (MCA), official liquidators, and consent orders (SEBI).
Watchoutinvestors.com provides search facility for identifying action against persons or entities. Subscriber can view charges or actions against any entity based on regulator, charge or action. The portal also allows to create personal watch out list for the subscriber.
This unique services that helps investors to keep track on defaults, non-compliance, regulatory action, and legal actions against corporates.
This website and its service can be used by individual investors to get information about entities or persons before making any new investment, or to review existing portfolio or while dealing with them in any manner. Corporates and market participants can also use watchoutinvestors.com for due diligence.
Delhi-based Prime Investors Association & League, a not-for-profit organisation runs watchoutinvestors.com, which is updated on a daily basis.
Watchoutinvestors.com, is the world’s only national web-based registry covering entities including companies, intermediaries and individuals who, have been indicted for an economic default, have been non-compliant of laws and guidelines and are no longer in the specified activity.
"This information which was disorganised, difficult-to-use and was spread across a large number of sources like websites, databases, publications, notifications and orders of the government and of other organisations, agencies, courts of law, tribunals and commissions, has now been aggregated, indexed, standardised, reformatted and re-presented on our website in a form and manner that can be accessed in a user friendly manner," watchoutinvestors.com, says.
There are 3.87 lakh companies and individuals listed as non-compliant under the MCA. This includes, 1.30 lakh corporate entities and 2.57 lakh individuals, who have defaulted in compliance, reveals data compiled by watchoutinvestors.com.
The website has also listed 4.61 lakh persons disqualified from directorships by MCA as also the associated companies (for non-compliance of the Section 164 (2) (a) of The Companies Act). This includes 3.10 lakh company directors and 1.50 directors of associated companies disqualified by the MCA.
It has a list of 4,899 members of parliament (MPs) from Rajya Sabha and Lok Sabha, members of state legislative assemblies and members of state legislative councils under the politically exposed persons.
Between 2003 to 2012, watchoutinvestors.com was supported by investor education fund of the ministry of corporate affairs (MCA). After 2012, it is co-sponsored by the National Stock Exchange (NSE) and BSE.
Watchoutinvestors.com offers its services on an annual subscription basis. Its annual plan ranges from Rs75,000 to Rs1.45 lakh. This, excludes search facility based on permanent account number (PAN), director identity number (DIN) or company identity number (CIN), for which it charges Rs30,000 extra.
It is a pity that this service was started by the Investor Education and Protection Fund (IEPF) administered by the ministry of corporate affairs (MCA). Unfortunately, IEPF stopped supporting watchoutInvestors.com, forcing the service to charge a fee from users. But considering the value in the service it offers, the subscription charges are reasonable, especially for those who take an effort to study before investing their hard-earned money.