SEBI to curb Black Money
Written by : SMTV24x7 | Tue, May 30, 2017, 01:03 PM
New Delhi, MAY 30: Another move has been taken to curb black money in India. The Securities and Exchange Board of India SEBI will soon levy a $1,000 fee on foreign portfolio investors (FPIs) for each participatory note (P-Note) issuance.
Sources say that this move will cut down speculative investments. The board has released a paper for public consultation on Monday. Paper reveals that the markets regulator would soon ban P-Notes that are based on derivatives used purely for speculative purposes.
Currently, P-Notes, are issued by registered FPIs for overseas investors who wish to invest in Indian stock markets without registering themselves with Sebi.
Experts say that these Participatory notes are Being Misused to convert Black money to White by investing the Hawala routed money into the country as Investment.
Earlier the SIT formed on black money eradication has also recommended banning Of P-Notes. Finally, the regulator feels that this move will help to curb round-tripping of black money.