SEBI Seeks Finance Ministry’s Help In Money Laundering Probe

In order to curb the menace of money laundering in listed companies, the Securities and Exchange Board of India (Sebi) has sought the help of various investigative agencies under the Finance Ministry.

According to a media report, SEBI had recently written to the Finance Ministry, bringing to light evasion of taxes by some companies and the modus operandi used by them.

"The regulator has sought that various investigative agencies including enforcement directorate, financial intelligence unit and the income tax department expedite their investigation in the listed companies' 'tax evasion'," a newspaper quoted a source as saying.

SEBI is currently looking into almost 100 listed companies suspected of being involved money laundering. As per the regulator’s estimates, the amount involved in the alleged scam could be as much as Rs 20,000 crore. The market regulator has barred about 360 entities from the capital market till now.

SEBI’s preliminary probe has revealed that these companies “exist only on paper.” These companies use the exchange platform to convert “black money into white.” "Probe is underway to verify whether these companies and related entities carried out trading among themselves to manipulate share prices, before and after preferential allotment," said a source.