Business Daily from THE HINDU group of publications
Monday, Dec 22, 2008
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Business Daily from THE HINDU group of publications Monday, Dec 22, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Stock Markets Markets - Regulatory Bodies & Rulings Web Extras - Economic Offences Our Bureau New Delhi, Dec. 21 A Parliamentary Panel has supported the view of the Securities and Exchange Board of India that the anti-money laundering law in the country should provide for the refund of proceeds that are attached in securities market offences such as insider trading and takeover violations. With the amendment Bill on the anti-money laundering law seeking to categorise such offences as “predicate offences,” the proceeds from these securities market offences are liable to be attached by the Centre. In such cases, investors would not be entitled to refund or reallocation of shares after the proceeds are confiscated. SEBI had told the Parliamentary Standing Committee on Finance that the proposed move would lead to the possibility of depriving the investors of refunds or reallocation of shares that may be ordered by the capital market regulator in cases involving manipulation of primary issues etc. The Standing Committee on Finance, headed by Mr Ananth Kumar, has in its report, which was tabled in Parliament, noted that it may be necessary to incorporate a specific provision in the legislation to make the proceeds from such offences not liable to confiscation and enable refund of such proceeds.
SEBI had in the recent past ordered refunds in cases such as manipulation in primary issues. It had also directed reallocation of shares to retail investors in the case of IPO irregularities. Meanwhile, with a view to making the compliance and reporting regime, under the prevention of money laundering law, more broad-based and comprehensive, the Committee had recommended that the Government should consider expanding the ambit of the law by covering designated non-financial businesses and professions. The Prevention of Money Laundering Amendment Bill 2008 — seeks to bring casinos within the ambit of the anti-money laundering law reporting obligations. SEBI had suggested that apart from casinos, other designated non-financial businesses and professions as defined in the financial action task force (FATF) methodology such as lawyers, chartered accountants, gold or gems dealers and real estate agents also be brought under the compliance and reporting regime of the anti-money laundering law. The Finance Ministry had, however, submitted that in the Indian context, it would not be feasible to include all these entities in the anti-money laundering law reporting regime just now. SEBI serves notices to 2 for IPO allotment manipulation SEBI okays Rs 2.6 crore consent order in IPO scam IPO scam: 12 financiers pay to settle dispute More Stories on : Stock Markets | Regulatory Bodies & Rulings | Economic Offences
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