In a major clampdown, regulator SEBI has debarred over
1,000 entities from the capital markets after they were found to be misusing
stock exchange platforms for tax evasion to the tune of more than Rs 15,000
SEBI has also suspended trading in shares of as many as
167 companies, while the regulator has written to the Income Tax Department
in nearly 100 cases where more than 1,800 entities are suspected to have
traded in shares valued beyond their disclosed income.
Such activities were mostly happening through shares of
shell companies or thinly-traded penny stocks. There has not been any
instance of a blue-chip stock being used for generating bogus profits or
losses to evade taxes.
An analysis of the enforcement and surveillance measures
taken by Sebi since August 2014 shows that 167 stocks have been completely
suspended for trading and trading has been restricted to a lower price band
of 2 per cent for 123 others.
SEBI has also written to Income Tax Department with
details of 1,854 entities who have provided exit to preferential allottees
for trade value of nearly Rs 3,900 crore.