For Quick Alerts
For Daily Alerts

Revenue Dept Probing Entities Over Penny Stock Misuse: Das

By Super

New Delhi, Aug 21 (PTI) A day after Sebi clampdown on 59 entities misusing stock market for evading taxes, the government today said the investigation wing of the Revenue Department is probing companies which use the penny stock route for tax evasion.

Revenue Dept Probing Entities Over Penny Stock Misuse: Das

"Sebi has certain facts before it and it has enough proof to show that market rules and practices were not in line with legal provisions, but let me also mention that this is one area where the Revenue Department has been working on companies which use certain penny stocks to misuse provision of capital gains," Revenue Secretary Shaktikanta Das said here.

"It's a matter which our investigation wing is examining and taking a lot of action," he said on the sidelines of a PHD Chamber event here.

Capital market regulator Sebi yesterday barred 59 entities, including HNIs, from securities markets and also referred the case to the Income Tax Department for further investigations.

The Securities and Exchange Board of India (Sebi) found that there were several entities which consistently suffered significant losses and others who consistently made significant profits by executing reversal trades in stock options on BSE.

The trading pattern of both loss-making and profit-making entities in this case fails to justify any of the normal strategies of hedging, speculation and arbitrage. More than 950 entities have already been banned from the capital market by the regulator for suspected tax evasion of at least Rs 5,000-6,000 crore, Sebi Chairman U K Sinha had recently said.

Following the latest order, the number of barred entities in such matters has crossed 1,000. However, this was the first instance of action on tax evaders using stock options.

The banned entities include RiddiSiddhi Bullions, Woodland Retails Pvt, Mahakaleshwar Mines & Metals Pvt, Shir Commodities & Futures (P), Gyandeep Khemka, Ashok Kumar Damani, Jaideep Halwasiya, Swaran Financial, Gurmeet Singh and Vision Sponge Iron.


Read more about: penny stocks
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more