Monday, July 27, 2015

Find the real owners of #P-notes:#SIT on Black Money tells #SEBI

Supreme Court-appointed Special Investigation Team (SIT)  headed by MB Shah on black money suspects that savvy tax evaders from India are using this route to deploy their black money into Indian securities. It recommended Sebi should do more to identify real owners of P-notes and restrict their transfer.
But clampdown on transfer of P-notes could result in a fall in foreign portfolio inflows. There have been concerns over Indian promoters using P-notes to bet on their own companies.

Participatory Notes or P-Notes are instruments issued by registered foreign institutional investors (FII) to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator.

The total investment by foreign institutional investors through P-Notes in India till this month has risen to Rs 2.75 lakh crore, of which as much as Rs 1.78 lakh crore has been made in equity. It is widely suspected that a large part of the P-Note investment may be Indian black money being round-tripped.