At least 1 000 individuals and companies have attracted Indian markets regulator Sebi’s attention for allegedly using stock markets to evade taxes and launder money through companies mostly existing on paper, notes a report in The Economic Times.
It says Sebi is focusing on securities market related violations by these individuals and companies, who have used trading in at least 25 listed companies to evade taxes and convert black money into ‘legitimate-looking’ funds, by creating fictitious gains or losses in the stock market.
The regulator is also looking into the use of derivatives trading by such entities, while it has asked other agencies including Income Tax Department, Enforcement Directorate and Financial Intelligence Unit to further investigate the cases of tax evasion and money laundering, sources said, according to the report.
Full report in The Economic Times
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