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Sunday, April 26, 2009

Some India Diamond Trading Schemes May involve Hawalas

Of the 230 entities banned by the Securities and Exchange Board of India for their role in the Nirmal Kotecha scam, 43 are actually companies registered as gems and jewellery and diamond trading companies, while 63 are registered as export-import companies. Here is a verbatim transcript of Vivek Law’s comments on CNBC-TV18. Also see the accompanying video.

We told you earlier the Nirmal Kotecha-Pyramid Saimira scam is not just confined to one stock. He has been playing in several stocks that are now under probe. There is also a scanner on the role of various banks because there was a lot of movement in and out of various bank accounts.

The Rest @ MoneyControl.com

  • Along with him, 230 entities have been banned from the market.
  • Now, 43 of these 230 companies are actually companies registered as gems and jewellery and diamond trading companies, while 63 out of these are registered as export-import companies.
We understand the authorities are now probing whether these were indeed genuine companies indulging in this business.

  • If not, or even if they were, is this a situation of hawala transactions having taken place, or foreign exchange norms having been violated.
  • We understand that is now in the scope of this scam, which has also caught the attention of various regulators and authorities.
  • The Sebi order has already mentioned that a large deal of money laundering seems to have been witnessed in this entire scam.

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