Supreme Court appointed SIT will submit report
on black-money
Special Investigation Team appointed by the honourable Supreme Court of India has given certain recommendations on the aspect of curbing black money. The recommendations are meant to prevent misuse of exemptions in long-term capital gains tax, participatory notes and creation of shell companies. It has also dealt with the issue of Money Laundering and stated that trade-related money laundering has to be prevented and strict measures shall be taken under Anti-Money Laundering laws.
Various donations to charitable institutions, educational institutions etc. will also come under strict scanner as per the recommendations of the Team. The team also stressed that the pending cases relating to Income Tax issues has to be decided upon on fast-track and for the same additional Courts may be set up. Sports-related money origins also to be verified so as to ensure proper check on black-money. The Team also pointed out that for preventing misuse of participatory notes, information as to the beneficial owners has to be obtained. Participatory note is a derivative instrument issued in foreign jurisdictions, by a foreign institutional investor against underlying securities in India. As the participatory notes allow investors to earn returns on investment in Indian market without undergoing significant cost and time hassles of direct investment in the country, the same is more dearest to foreign investors. Adding to the recommendation the Team noted that Know Your Client (KYC) is of utmost importance for issuing Participatory Notes and SEBI as a regulator can take stringent measures to ensure that participatory notes are not misused.
The Supreme Court has asked the Team to submit detailed report on the issue and the Team is likely to submit the same soon.

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