The Government cautioned small investors against misleading advertisements of Companies looking to tap the capital market and advised them to verify their credentials before putting in their money.
The Ministry of Corporate Affairs has, in fact, offered its services to investors for helping them check the promoters' track record and regulatory compliances, among others.
The caution came in a public interest advertisement in leading newspapers on Monday and assumes significance in the wake of over 50 IPOs awaiting regulatory clearances.
The initiative of the Corporate Affairs Ministry is on the lines of alerts issued by the Bombay Stock Exchange and National Stock Exchange, which had categorically said: "Do not get swayed by promises of high returns. Verify the tall claims made in advertisements."
The information needed to make an informed decision for IPO investments is available with the ministry on its website as also on other investor-focused government websites.
The ministry said information like master data of Companies, details on directors and documents like annual returns and balance sheets as well as a list of those that had duped investors 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.
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