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In the case of mask companies, filmmakers, builders and brokers are also in the investigation
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| In the case of mask companies, filmmakers, builders and brokers are also in the investigation |
Business
New Delhi: Market regulator Sebi has stepped up its action in black money case. In this case, the units related to the builder, broker and film field have also come under investigation. To investigate the role of various entities in legalizing illegal money, many investigating agencies are engaged in the investigation of hundreds of suspected mask companies.Regulatory and official sources said that the Securities and Exchange Board of India (Sebi) has given show-cause notices to those 331 listed units which are suspected to be involved in the transaction of money in the form of mask companies. Apart from this, action has also been initiated against 100 non-listed units which are suspected of working in shares to make illegal money white.
Capital market regulator Sebi decided to ban trading in shares of suspected mask companies, but some companies challenged this matter in the Securities and Appellate Tribunal (SAT). The tribunal ruled in favor of these companies and allowed the investigation to proceed further in the case so that it can be ascertained whether they violated the security rules.
Many of these companies publicly issued a statement denying any kind of disturbance and stressed that they are not mask companies. A top official said that keeping in the category of mask companies, there is a misconception that some big companies can also work as a mask company by providing platform for money laundering and illegal money laundering. Another official said that many small brokers are in the list of suspected mask companies. SEBI is investigating the connection with their large brokerage group.
He said that due to the role of some brokers, the situation in the stock market is frightening. There has been panic in the market due to the decision on ban of the shares of Sebi's 331 companies. This move of SEBI will protect the interests of minority shareholders. Apart from SEBI, these companies are also investigating the Income Tax Department, Enforcement Directorate and the Serious Fraud Investigation Office. Many of these companies are also suspected to be involved in cash transactions after the ban on bank robbery.
Referring to the official documents and the facts received in initial scrutiny, the officials said that about 500 units (listed and unlisted) are under investigation, but some of them have not been made public yet. This is not to affect the sensitivity of the case and the investigation process. Companies which worked as mask companies in large numbers, are associated with land, property and stock broking, film and television, plantation and non-banking financial related services. Suspicious companies have been asked to tell about these contacts and all suspicious transactions.
After taking action on the suspected 331 listed companies last week, SEBI has asked the stock exchanges and brokers to verify the details of 107 non-listed entities and if the satisfactory results are not found, then the business has to be restricted.