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No hasty action on SIT report on money laundering: Jaitley

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New Delhi: Reacting to a SIT report suggesting that market regulator SEBI needs to monitor participatory note misuse for money laundering, the government on Monday said it would avoid any knee-jerk decision that could hurt investor sentiment.

The government also said that it would study the Special Investigation Team (SIT) recommendations in due course of time.

The BSE Sensex fell sharply by over 400 points in intra-day trade on concerns over curbs on P-notes, while the 50-scrip Nifty fell below its support level of 8450.

“No step would be taken which could adversely impact investment sentiment in the country. But the government will certainly not take any such action in a knee-jerk fashion, particularly one which has any adverse impact on investment environment,” Finance Minister Arun Jaitley told reporters in his parliament office.

“The government will apply its mind in due course keeping in mind the investment environment of the country as also the objective behind the SIT recommendations and then take a final view on the matter,” he added.

“The government will study those recommendations, and take decision after due consultation with all stakeholders,” Revenue Secretary Shaktikanta Das also told reporters here.

“At this point, there is no need for the market to respond or react in any manner and not show any panic,” he said.

“The KYC (know-your-customer) and other requirements under P-notes regime have been improved over the last few years,” he added.

The Supreme Court-appointed SIT on black money on Friday said Securities and Exchange Board of India (SEBI) must have a monitoring mechanism for unusual rise of stock prices and study the misuse of participatory notes for money laundering.

“SEBI needs to have an effective monitoring mechanism to study such unusual rise of stock prices of companies while such a rise is taking place,” the SIT said in its report titled ‘Misuse of exemption on long-term capital gains tax for money laundering’.

“Once such instances are detected, SEBI should invariably share this information with the Central Board of Direct Taxes (CBDT) and Finance Intelligence Unit (FIU),” it said.

“Enforcement Directorate (ED) should then be informed to take action under the Prevention of Money Laundering Act for the predicate offences,” the report added.

The SIT cited SEBI investigations on companies with poor financial fundamentals in terms of past income raising huge capital by allotment of preferential shares to various entities. This is followed by a sharp rise in share prices, once the preferential allotment is done, through circular trading.

The market regulator has also been asked to put in place a mechanism to monitor the beneficiaries of participatory notes.

“Obtaining information on “beneficial ownership” of P-notes is of crucial importance to prevent their misuse. SEBI needs to examine the issue and come up with regulations where the ‘final beneficial owners’ of P-notes are known,” the SIT said.

Regarding P-notes, the SIT noted that based on the data provided by SEBI, a major chunk – over 31 percent – of outstanding Offshore Derivative Instruments (ODIs) invested in India are from Cayman Islands.

“This translates to roughly Rs.85,006 crore. The Cayman Islands had a population of 54,397 in 2010, according to Wikipedia. It does not seem conceivable that a jurisdiction with a population of less than 55,000 could invest Rs.85,000 crores in one country,” the report said.

The SIT further said that the Serious Fraud Investigations Office (SFIO) should mine data to track shell companies and share information with other agencies like CBDT, ED and FIU.

Norms are needed to check the menace of betting in cricket since a massive amount of black money is used and generated in this way, the SIT said

(IANS)

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Court Asked Arvind Kejriwal if He Lied about Calling Arun Jaitley, a Crook

The court asked Kejriwal to abstain from "scandalous" and "indecent language"

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The surge of 20 per cent price in water tariff will ,levied after the free quota of 20,000 litres
The surge of 20 per cent price in water tariff will ,levied after the free quota of 20,000 litres
  • Arvind Kejriwal was asked to clarify if he lied about calling Finance Minister, Arun Jaitley a crook
  • The Chief Minister is now supposed to offer his defense to the Delhi High Court
  • Jethmalani says that the Chief Minister owes him two crores for his appearances

New Delhi, Aug 23, 2017:  Aam Admi Party Chief Arvind Kejriwal was asked to clarify if he lied in court by pretending that he did not ask for abusive language to be used against Finance Minister Arun Jaitley, mentioned NDTV report.

Previously, Kejriwal stated in the court that he had not instructed his former counsel Ram Jethmalani to use  “crook” to describe the union minister in court. But Jethmalani claims that the Chief Minister used harshly insulting words to attack Jaitley.

Jethmalani declared that according to Jaitley, Kejriwal had misled the court by denying the allegations. In fact, he says Jethmalani has written to him to insist that was the case.
The Chief Minister is now supposed to offer his defense to the Delhi High Court.

In 2015, Jaitley sued Kejriwal and five top leaders of his Aam Aadmi Party for defamation after they accused him of corruption during his 13-year tenure as the top boss of the DDCA, the powerful cricket association that handles Delhi and its surrounding areas.  In two separate cases – criminal and civil – Jaitley has sought damages of 10 crores.

Also Read: Ram Jethmalani Exposes Arvind Kejriwal. Says, Kejriwal was Fixated on calling Jaitley Crooked 

During court the proceedings last month, Jaitley complained to Jethmalani’s language and said ‘Kejriwal’s team is delaying hearings in the Delhi High Court.’

The court asked Kejriwal to abstain from “scandalous” and “indecent language.”

After the Chief Minister said that he had not approved the abusive words, the lawyer riposted in a blog: “Ask your conscience how many times you used worse abuses than a mere ‘crook.’ You have hundred times asked me to teach this crook a lesson.”

Jethmalani says that the Chief Minister owes him two crores for his appearances. It seems that, in his new enmity with Kejriwal, he has become an indirect ally of Jaitley.


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