22 July 2015

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Black Money SEBI Bans 900 entities Rs. 6000 Crore tax evasion occurred

Black Money SEBI Bans 900 entities Rs. 6000 Crore tax evasion occurred

Sebi chairman U K Sinha told to media that "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 5000-6,000 crore,"
We have given all the details to the CBDT (Central Board of Direct Taxes)

Sinha gave example of the IPO market he said Sebi found "some people had virtually set up shops"
"If you want to raise Rs 200 crore (Rs 2 billion), come to me, I will provide you the buyers, I will provide you the platform and I will provide you with a mechanism on how to go for the listing.
They were manipulating the market after listing,"
Sebi was able to crack this.

Then Sinha told about GDR markets and Insider Trading

About Insider Trading Sinha said following

"We found that there are these companies where the price has gone up by 10-times, 20-times and even more in some cases. Our surveillance systems caught this signal and we started probing. We started asking if your share price has gone up ten times, has your business also grown. Has your profit, turnover, order book, etc grown?

"We found that there was no correlation in the price and the business of these companies. Then we went to the next step and started getting into who were the buyers and sellers of these shares and from which bank account the money was coming.

"Then we realized that there was a racket going on. The same set of people were at play at all the levels and their intention was not just to manipulate the market, but their intention was actually to make the black money white.

"But they were doing it through our stock market mechanism. We caught then and we have banned more than 900 entities

It is anticipated that the tax avoidance that has happened in these cases is more than Rs 5000-6,000 crore,"

Suggested Reading –

Black money: Sebi busts Rs 6000-crore 'tax evasion shops' in stock market


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Wednesday, July 22, 2015

Tags – Black Money SEBI Share Market 900 Banned Rs. 6000 Crore