Thursday, May 6, 2021
Home Business S.E.B.I. tracks black money laundering in stock markets

S.E.B.I. tracks black money laundering in stock markets

by NewsGram Staff

black money in stock market

Stock market is one of the most preferred establishments for entities which indulge in money laundering and tax evasion. Securities and Exchange Board of India (S.E.B.I.) is all set to eliminate any scope for this with its decision to suspend trading in all the listed companies these entities use to accommodate such unfair practices.

Based on the three parameters set by the financial market regulator, if any company is found to fall under more than one of the criteria, it would suspend the shares of those entities and ensue appropriate action against them.

The parameters formed by S.E.B.I. include the mentioned address being non-existent, misuse of preferential allotment, and weak fundamentals that do not support price rise. It can be noted that preferential allotment is a major route for money laundering.

In its probe S.E.B.I. noticed ups-and-downs in prices in shares of the companies which were non-existent in reality. The shares were allotted preferentially to favorite entities and prices were pushed up without any fundamental basis, which was then followed by an exit by the investors.

In due course, the shares were sold back to the company or the entities translating big profits. S.E.B.I. noted that in such stocks fundamentals did not justify the price. Crores of rupees are involved in such illicit activities that pick momentum during the last few months of a fiscal year and are under the scanner.

Some listed firms and promotion channels have been found to offer regular services to offenders to help them in the tax evasion and laundering of black money.

The watchdog is contemplating a strong move against such entities to set an example.



Most Popular

Russian Scientists Establish Buddhist Meditative State ‘thukdam’

In first scientific evidence, Russian scientists have demonstrated that the body of a person in the rare spiritual meditative state of 'thukdam' is in...

Tourists Queue Up 60 Years After The First American In Space

Sixty years after Alan Shepard became the first American in space, everyday people are on the verge of following in his cosmic footsteps. Jeff Bezos'...

Are Europe’s Climate-Action Targets Achievable?

By- Jamie Dettmer How politically realistic are the climate action goals that European governments are setting in lockstep with the United States? Some analysts are warning...

Gold Diggers: ‘It’s About Gold’, Says Author Sanjena Sathian

It began as a tale of a mother and a daughter, two Indian Americans who are gold thieves, but expanded into a magical realist...

Twitter Introduced New Prompts To Combat Bullying

Twitter has rolled out improved prompts on iOS and Android that will encourage users to pause and reconsider a potentially harmful or offensive reply...

UN Agencies: Food Insecurity Has Reached A Five-Year High Globally

Global conflicts, economic crises, and extreme weather conditions have pushed the number of people who faced acute food insecurity to 155 million in 2020,...

Historical, Mythological Tales Hit Small Screen

Last year during Covid lockdown, Doordarshan struck gold re-telecasting "Ramayan", Ramanand Sagar's hit mythological series of the eighties. This year, as India has come...

‘Aerosols’ Generated During High-Intensity Exercise, Aids In COVID Spread

High-intensity exercise produces more respiratory aerosols that can be harmful and aid in the transmission of Covid-19, and using a high-efficiency particulate air (HEPA)...

Recent Comments