Capital markets regulator SEBI has enhanced its vigil on entities engaged in illicit trading and has suggested probe by other agencies to check laundering of black money through stock markets.
SEBI, which found several entities with unauthorised schemes laundering black money to evade taxes, is currently probing many such cases. It has also barred two entities for illicit tax-free gains running into hundreds of crores of rupees.
In the first order, SEBI barred Mishka Finance, its 6 promoters, 4 directors and 170 other entities from accessing securities market and prohibited them from buying, selling or dealing in securities till further directions.
SEBI has suo motu carried an examination after noticing an exorbitant rise in trading volume and share price of Mishka and found the company along with its promoters and directors issued new shares through preferential allotment to certain entities. Further, the promoters transferred their holding in physical form to related entities, while price of the scrip increased astronomically despite low volumes. One month after share split, the preferential allottees and promoter-related entities started selling the shares to entities related to Mishka, thereby making huge profits.