New Delhi, Feb 24: Market regulator Sebi has advised exchanges to keep a 'constant and strict vigil' on companies as it has found many firms to be misusing the stock exchange platform for tax evasion, Parliament was informed on Tuesday.
Besides, 83 entities have come under the scanner of Securities and Exchange Board of India (Sebi) during current fiscal for raising funds from public through illicit schemes.
Sebi, which has conducted preliminary inquiries, has prima-facie observed that companies acting in concert with each other have misused the stock exchange system to generate fictitious long-term capital gains tax, which is tax exempt.
These companies have indulged in these activities to evade tax. In a written reply to Rajya Sabha, Minister of State for Finance Jayant Sinha said: "Sebi has advised stock exchanges to keep constant and strict vigil" on companies which are involved in such misuse of the stock exchange mechanism for tax evasion and take immediate action.
Sebi has already passed orders in three cases--Moryo Industries, First Financial Services and Radford Global--and barred various individuals and companies from securities markets.