Sebi ups ante to check poll time money laundering
25 Nov 2013 6:05 AM IST
In view of the possible money laundering activities in the capital markets due to the ongoing poll season, market watchdog Sebi has increased surveillance to thwart any attempts by listed companies and intermediaries to launder investors’ money or bring in foreign funds for polls.
The country will witness general elections next year, while the process of five assembly elections is already underway and would be completed by next month.
While robust surveillance and intelligence systems are already in place for detection and prevention of any kinds of money laundering activities in capital markets, a senior official said that regulators are being extra watchful because of elections being typically known as periods of increased illicit fund flows.
It is feared that companies may divert funds from their business for funding elections without the knowledge of investors, while scrupulous entities may also use certain market intermediaries to generate funds illegally for polls. Sebi is keeping a watch on compliance of norms regarding anti-money laundering and settlement of accounts of clients on timely basis.
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