SEBI should monitor ‘beneficial ownership’ of PN holders: SIT on black money

New Delhi, July 24 (ANI): The special investigation team (SIT) on Friday issued a report on ‘misuse of exemption on long-term capital gains tax for money laundering’.

The SIT said that SEBI should come up with regulations on collection beneficial ownership details of Participatory Notes (PN) holders, as also for monitoring any unusual rise in stock prices.

The SIT also flagged serious concerns over huge amounts of black money being used and generated in areas like betting as also in donations to schools, colleges and religious institutions.

This is the third SIT report on black money, in which it raised concerns regarding “involvement” of huge illegal and unaccounted money in cricket betting, especially Indian Premier League (IPL) and made a case for effective legislative steps to deal with the menace.

On the misuse of capital markets to launder black money, the panel said SEBI should put in place an effective mechanism to monitor any unusual rise in stock prices and inform other agencies like CBDT and Financial Intelligence Unit (FIU) for necessary action.

The SIT also insisted that Central KYC Registry (CKYC) be notified as early as possible.

It also pitched for empowering the Directorate of Revenue Intelligence to investigate cases of mis-invoicing or violations of Customs Act in relation to special economic zones (SEZs).

This issue was deliberated by the SIT during a series of meetings held on January 7, March 14, April 8 and April 30. (ANI)

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