RBI, Sebi to keep watch on illicit Swiss money returning home
PTI reports that country’s apex bank and Financial regulators Sebi have enhanced vigil on Indian entities routing their funds from secretly-held Swiss bank accounts to India through Dubai and other locations, on fears of getting exposed for stashing the money in the European nation.
The stepped-up vigil for money laundering activities by the country’s two financial regulators comes in the midst of suspicion that there could be some Indian entities in the list of over 2,000 Swiss bank accounts that are expected to be disclosed soon by whistle-blower website Wikileaks.
While banks in the Middle East have seen a sudden spurt in their deposits in past few months, queries mailed to Swiss Bankers Association remained unanswered on whether the banks there have seen a rise in withdrawals.
It is feared that the Indian entities having accounts in Swiss banks might move their funds to Middle East and other locations and then route them back to India, either into the stock market through FIIs or the FDI route.
While Sebi is responsible for oversight on funds flowing into or out of capital markets, RBI approval is needed for FDI (Foreign Direct Investment) inflows for many sectors. Besides, RBI also monitors flow of overseas funds into stock market through foreign or overseas banks.
The money stashed in the Swiss bank has become a hot topic and matter of debate back in India. The apex court and the opposition party has asked the central government to take account of the money stashed in the Swiss bank.
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