JOIN USThe government Monday assured investors that it will not take any action in haste on the Special Investigation Team’s suggestion for a greater surveillance on foreign funds in stock market.
“It is too early to say what view the government would take. But it will certainly not take any such action in a knee-jerk reaction, particularly one which has any adverse impact on the investment environment,” Finance Minister Arun Jaitley told reporters in his Parliament House Office.
In its third report to the government, the Special Investigation Team (SIT) on black money, headed by Justice M B Shah last week, said that Sebi should study and come up with regulations to curb misuse of P-Notes. P-Notes are used by a large number of foreign investors to park funds in the equity market without disclosing their identity to Sebi.
Suspecting misuse of the stock market platform to launder black money, the SIT said that Sebi should also monitor unusual rise in share prices of small companies while the Enforcement Directorate should take action under the Prevention of Money Laundering Act for predictable offences.
Revenue Secretary Shaktikanta Das too said that there was no need to panic, and the Finance Ministry will take a view on the SIT suggestions only after consultations with Sebi, RBI and other institutions. “At the moment, there is no need to panic. We will take views after consultation with stakeholders including Sebi, RBI and related institutions. There is no need for markets to react in any particular manner,” he said.
The SIT said that about Rs 85,000 crore came in through P-Notes from the Cayman Islands, which has a total population of about 54,000.