Millennium Post

SEBI goes online to check fraud

Market regulator SEBI has asked all the entities under its jurisdiction to submit suspicious transaction reports (STRs) electronically through a new direct online gateway to the Financial Intelligence Unit (FIU).

FIU-India is the country's nodal agency for receiving, processing, analysing and disseminating information relating to suspect financial transactions to various enforcement agencies and their overseas counterparts.

Market regulator Sebi has communicated to the country's two leading stock exchanges – BSE and NSE – that FIU-India has developed this new reporting gateway for submission of STRs and Cash Transaction Reports (CTRs).

The bourses have accordingly directed all the market entities to initiate submission of these reports on the new FIU gateway and ensure compliance to the Sebi directive.

These reports help the enforcement agencies check manipulative practices, frauds and scams, among others.

Currently, various market and financial sector entities, including brokerage firms and banks, are allowed to submit various reports, including STRs, CTRs and Counterfeit Currency Reports (CCRs) electronically through CDs or manually in physical paper formats.

However, FIU-India has developed a new FINnet Gateway for direct uploading of these reports by the reporting entities.

FIU-India in August had told SEBI, Reserve Bank of India (RBI) and other agencies about the new system. It had asked them to advise reporting entities to initiate submission of reports through 'test mode' of the FINnet Gateway to check the new system.
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