The Government has guidelines/norms in place to prevent entry of black money in stock market/share trading.
Securities and Exchange Board of India (SEBI) in accordance with the requirements of the Prevention of Money-laundering Act, 2002 and Rules made thereunder has put in place a framework to prevent entry of black money in stock market/share trading. As part of these requirements, SEBI has put in place a framework that is required to be complied by all SEBI registered intermediaries.
SEBI, while conducting preliminary inquiries, have come out with interim directions that the following entities/companies acting in concert with each other have misused the stock exchange system to generate bogus Long Term Capital Gains (LTCG) which is tax exempt.
• Moryo Industries Limitd
• First Financial Services Limited
• Radford Global Limited
• Kamalakshi Finance Corporation Limited
• Mishka Finance and Trading Limited
• Pine Animation Limited
• Eco Friendly Food Processing Park Limited; Esteem Bio Organic Food Processing limited; Channel Nine Entertainment Limited and HPC Biosciences Limited.
This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.
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