Agreement with other Countries on Money Laundering Information
The Government of India has entered into Double Taxation Avoidance Agreements (DTAAs), Tax Information Exchange Agreements (TIEAs) and Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) with over 130 countries including tax havens. These agreements allow exchange of information between countries for tax purposes including information pertaining to money laundering and funding. On request made by Government of India under the above agreements, these countries provide relevant information including information pertaining to money laundering and funding.
The Foreign Portfolio Investors (FPIs) which issue Offshore Derivative Instruments (ODIs) also known as Participatory Notes (PNs) are required to submit the details of their ODI/PN activity to Securities and Exchange Board of India (SEBI) in the prescribed format on monthly basis and the same is uploaded on the SEBI website. The reporting format for ODI activities were modified in terms of SEBI Circular dated June 10, 2016. As per the submissions made by the ODI issuing FPIs the outstanding Notional value of ODIs issued by them during last few years is given in the table as per Annexure – A.
Out of the total number of 354 Anti-Profiteering applications, the Standing Committee has forwarded 65 applications to the Directorate General of Safeguards for investigation. Notices of initiation of investigation have been issued by the Directorate General of Safeguards in respect of 53 applications. The Standing Committee have sent back 68 applications to the jurisdictional GST authorities as not being anti-profiteering applications and 59 applications to the respective State level Screening Committees for reconsideration.
In order to ensure transparency and in light of various recommendations of Special Investigating Team (SIT) on black money, appointed by the Honorable Supreme Court of India, SEBI has been constantly tightening norms for taking exposure in Indian Capital Markets through ODI/ PN route. Some of the recent steps taken by SEBI are as follows:-
Annexure – A
|Outstanding Notional Value of Offshore Derivative Instruments (ODIs) Vs Assets Under Custody (AUC) of FPIs/deemed FPIs|
|As on the last day of the Month||Notional Value of outstanding PNs on Equity, & Debt and Derivatives * (INR cr.)||Assets Under Custody of all FPIs #
|Notional Value of outstanding PNs on Equity, Debt and Derivatives as % of B||Notional value of ODIs on Equity & Debt excluding Derivatives * (INR cr.)||Notional Value of outstanding PNs on Equity & Debt excluding Derivatives as % of B|
|* Figures compiled based on reports submitted by FPIs issuing PNs.|
|# AUC figures are compiled based on reports submitted by custodians & does not include positions taken by FPIs in derivatives.|
This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha today. (PIB)