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SEBI Chairman UK Sinha on Monday asserted that curbing black money or tax evasion was not the market regulator’s primary responsibility, although it has from time-to-time passed on information to the concerned authorities to clamp down on such illegal activities.
He also sought to debunk views that Participatory Notes were still an instrument that helped generate black money at the Indian bourses.
People are perhaps missing out that the Participatory Notes system today was hugely different from the one that was there three-four years ago, Sinha said.
“Today, we have got all the data about who are the participants in the Participatory Notes, who can issue it, who can subscribe to it, all that is very well documented,” Sinha said.
SEBI has all the data about entities that are using PNs, he said.
Sinha highlighted that tackling growth of black money or collecting tax revenues was not SEBI’s task and there were agencies in the country who were being paid for this job.
“You should appreciate that of all the agencies in the government SEBI is the first one which has by way of doing its normal duty of checking the manipulation of the market also come across an instance were tax was evaded. SEBI has passed on this information to the authorities,” Sinha said. He said that SEBI’s job is to protect the interest of investors and see that the market is not manipulated.
Retail investors would soon get to read 10-page abridged offer documents, PK Nagpal, Executive Director, SEBI, has said.
Abridged prospectus The abridged prospectus will be “readable” and “understandable” without compromising on information, Nagpal said.
It is now common that investors are generally put off by the large sized offer documents that are full of complex details and risk factors. They tend to skip such bulky documents while making investment decisions. To enable retail investors understand better the companies that they are investing in, the market regulator is now looking to allow abridged 10-page prospectuses/offer documents.
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