Suspecting tax evasion of at least Rs 5,000-6,000 crore, the Securities and Exchange Board of India (Sebi) has clamped down on a large number of organised syndicates that had set up ‘shops’ to convert black money into legitimate-looking funds through the stock market platform.
While more than 900 entities have been banned from capital markets by Sebi, it has also referred these cases to the income tax department for further investigation.
“We have banned more than 900 entities and my guess is that the tax avoidance that has happened in these cases is more than Rs 5,000-6,000 crore,” Sebi chairman UK Sinha said. “We have given all the details to the CBDT (Central Board of Direct Taxes) and we have told them that they should probe them,” Sinha added.
Talking about the menace of money laundering and other market-related manipulations, Sinha said the regulator is trying to curb such cases one-by-one very successfully. “As far as markets are concerned, one by one we are trying to curb the manipulation very successfully. But I must also say that this is an ongoing battle and I cannot say that we have controlled every thing,” he said.
Giving a “complete picture” on this menace, the Sebi chief said, “In any country or in any market, there are always people who are trying to find loopholes and take advantage.
“These are the people who have criminal intent. They are not here to help in the growth of the country. They work with a desire to corner money with criminal intentions,” the Sebi chairman said.