Tax Evasion: SEBI Relaxes Restrictions on 201 Entities

New Delhi: Sebi has eased restrictions on 201 entities against whom it had taken action in two different cases of alleged misuse of stock market platform for tax evasion and suspected money-laundering activities.

The entities, which were barred from the securities market in two different cases, have now been given certain relaxations, including permission to deal in government securities and invest in ETF (exchange-traded funds).

Besides, they can enter into delivery-based transactions in cash segment in NSE Nifty 500 index as well as S&P BSE 500 shares and subscribe to mutual funds.

Among others, these entities can tender shares lying in their demat account in any open offer/delisting under the relevant Sebi regulations.

In the matter of Radford Global Ltd, the watchdog had barred the company and 108 related entities in December 2014. Out of them, 102 entities including Radford Global have been given the relaxations.

In a separate case of Mishka Finance and Trading, Sebi had barred the company and 128 other entities from the securities market. Now, relaxations have been extended to 99 entities.

"I deem it appropriate to make further relaxations so as to address the issues of the personal and business exigencies or other liquidity problems," Sebi Whole-time Member Rajeev Kumar Agarwal said in two separate but similarly-worded orders.

As per the latest orders, the entities for whom relaxations have been extended can sell the securities lying in their demat accounts as on the date of interim orders. This will exclude shares of the companies which are suspended from trading by stock exchanges concerned.

Besides, sale proceeds lying in the escrow account can be used for certain purposes.

Sebi said, "up to 25 per cent of the value of the portfolio as on the date of the interim order or the amount in excess of the profit made/loss incurred or value of shares purchased to give exit, whichever is higher, may be utilized for business purposes and/or for meeting any other exigencies or addressing liquidity problems etc".