Professional Documents
Culture Documents
RECOMMENDATIONS
rose from Rs. 10.20 to Rs. 489 in 150 trading days a rise of
4694% ! The SIT obtained the background details of these cases
and studied them. A typical pattern is observed to be followed in
such cases.
A company with very poor financial fundaments in terms of
past income or turnover is able to raise huge capital by
allotment of
various entities.
There is a sharp rise in price of scrip once the preferential
allotment is done. This is normally achieved through
circular trading of shares among a select group of
companies. These group of companies often have common
promoters/directors.
The scrips with thus artificially inflated price are offloaded
through companies whose funding is provided by the same
set of people who want to convert black money into white.
(i)
(iii)
(iv)
and the
ensure that PNs are not used as conduits for black money or
terrorist funding. As per SEBI regulations, PNs can be issued to
only those entities that are regulated by an appropriate regulator
in the countries of their incorporation and are subject to
compliance of Know Your Client norms. FIIs are also required
to declare that these PNs have not been issued to
Indian
The main point of the above elaboration is just that it does not
appear possible for the final beneficial owner of ODIsoriginating
from Cayman Islands to be from that jurisdiction.
(i)
(ii)
SEBI
should
have
information
of
its
of expenditure. The
(i)
(ii)
of
shell
accommodation entries.
companies
and
providing
(i)
investigation
office(SFIO)
under
Ministry
of
experience
and
consultation
with
other
law
(iii)
(iv)
4.
the
suggestions,
to
ensure
that
small
proposal
has
been
sent
by
DEA
to
various
2.
shall
also
share
the
aforesaid
8. Need
for
establishment
of
Central
KYC
Registry
A central
1.
2.
of
the
1.1.3
10.
Zone
SIT has been informed that this matter has been taken up
with the Ministry of Commerce by Revenue Secretary and
DRI in the past.
Zone
or Unit