Entities linked to seven companies have been found to be generating ‘bogus’ long-term capital gain by misusing the stock exchange route, Parliament was informed today.
These companies are Moryo Industries, First Financial Services, Radford Global, Kamalakshi Finance Corporation, Mishka Finance and Trading, Pine Animation and Eco Friendly Processing Park.
Markets regulator Sebi, while conducting preliminary inquries, have found that these companies “acting in concert with each other have misused the stock exchange system to generate bogus Long Term Capital Gains, which is tax exempt,” Minister of State for Finance Jayant Sinha said in a written reply to the Lok Sabha.
These entities are found to have manipulating the securities market to evade tax.
To prevent entry of black money in stock market, Securities and Exchange Board of India (Sebi) has put in place a framework.