<p>The Supreme Court on Friday issued notice to the Centre, RBI, market regulator Sebi and CBI on a plea to prevent offshore portfolio investors, who have invested in the Indian stock market through P-Notes, from withdrawing the money till further orders.<br /><br /></p>.<p> A bench of Justices Dipak Misra and C Nagappan sought responses from different agencies on the interim application by advocate M L Sharma in his pending PIL (public interest litigation) seeking CBI probe against Indian offshore bank account holders named in the Panama papers.<br /><br />The petitioner contended that Rs 25 lakh crore black money, floating in the stock market, would be siphoned off by the FIIs, who have invested through P-notes.<br /><br /> P-Notes are derivative instruments issued by registered foreign portfolio investors to overseas investors to enable them trade in stock market here without getting registered with Sebi. Referring to a recent proposal of Sebi which increased disclosure requirements for issuance of P-Notes, the counsel claimed this would lead to siphoning off money by investors.<br /><br />The new rules enable the regulator to check the complete transfer trail of P-Notes money on a monthly basis, he claimed. The petitioner also sought direction to the CBI to seize entire records of participatory notes under the Sebi and RBI’s control.<br /><br /></p>
<p>The Supreme Court on Friday issued notice to the Centre, RBI, market regulator Sebi and CBI on a plea to prevent offshore portfolio investors, who have invested in the Indian stock market through P-Notes, from withdrawing the money till further orders.<br /><br /></p>.<p> A bench of Justices Dipak Misra and C Nagappan sought responses from different agencies on the interim application by advocate M L Sharma in his pending PIL (public interest litigation) seeking CBI probe against Indian offshore bank account holders named in the Panama papers.<br /><br />The petitioner contended that Rs 25 lakh crore black money, floating in the stock market, would be siphoned off by the FIIs, who have invested through P-notes.<br /><br /> P-Notes are derivative instruments issued by registered foreign portfolio investors to overseas investors to enable them trade in stock market here without getting registered with Sebi. Referring to a recent proposal of Sebi which increased disclosure requirements for issuance of P-Notes, the counsel claimed this would lead to siphoning off money by investors.<br /><br />The new rules enable the regulator to check the complete transfer trail of P-Notes money on a monthly basis, he claimed. The petitioner also sought direction to the CBI to seize entire records of participatory notes under the Sebi and RBI’s control.<br /><br /></p>
