India: SEBI imposes trading curbs on suspected shell companies

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Mumbai (Reuters) – India imposed trading restrictions on 162 listed entities identified as shell companies.

The announcement by the Securities Exchange Board of India (SEBI) late on Monday did not say what illegal activities the companies may have been engaged in.

The restrictions include limiting trading in the affected companies to once a month and curbs in the trading of shares held by the promoters and directors of the companies. This will be helpful in stopping, illegal offshore transfers and tax evasion.

The government has been going after companies it suspects of engaging in irregular transactions after a ban on high-value currency bills late last year, including transferring money abroad illegally, or “black money,” and evading taxes.

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