Brokers Probed for Fraud.
MONEY LAUNDERING :-
Money laundering refers to the process of making illicitly obtained money appear legitimate by passing it through a complex series of transactions or activities . The term “money” laundering originated from the practice of the criminals trying to make illegally obtained money from activities like drug trafficking or corruption appear clean ,as it came from legal source .
Money laundering involves three phases :-
1] Placement :- This is the initial stage where the funds are introduced in the financial system .The goal is to place the illegal proceeds into the legitimate economy without raising suspicion . This can be done through methods such as depositing cash in bank, purchasing assets or using money transfer services .
2] Layering :- In this stage the process of obscuring the origins of the fund begins .It involves creating complex layers of transaction to make it difficult to trace the money back to its source . Techniques used include multiple transfers between accounts ,converting funds into different financial funds .
3] Integration:- The final stage involves merging of the laundered money back into the legitimate economy .At this point the money appears to be clean and can be freely used or invested without raising suspicion .
FRAUDULENT TRANSFER :-
Fraudulent transfer refers to dishonest or deceptive practices in financial markets with the intervention of manipulating prices , misleading investors from trading activities . It involves various kings of misconduct such as false representation ,market manipulation or engaging in trading practices.
SEBI [ SECURITIES AND EXCHANGE BOARD OF INDIA ]
It plays an crucial role in combating money laundering in India , SEBI is regulatory authority responsible for overseeing the securities market in India and protecting the interest of the investors .
While SEBI primary mandates it to regulate and develop securities market , it also works in collaboration with other regulatory body and law enforcement agencies to addresses money laundering concerns within the securities industry SEBI has implemented various measures to prevent money laundering activities in India securities market.
THREE TOP BROKERS FACE MULTIPLE PROBES INCLUDING FOR
MONEY LAUNDERING AND FRAUDULENT TRADES :-
Three top brokers of the country have come under some scanner of multiple regulatory and enforcement agencies , including for suspected money laundering and fraudulent transfer trading activities amounting of several thousand of crores of rupees , senior officials .
The three brokers were also accused of establishing links with PEPs {politically exposed individual }and the involvement of the significant family member of the top political leader in the key industrial estate is also being examined .PTI quoted officials as saying the name of the broker could not be revealed dude to nature of ongoing events .
The investigation have been under 4-5 years on multiple fonts against the three to brokers who head organisations with business spread across multiple segments of the capital markets and the financial services , portfolio management ,assets management fund and non banking financial services
While suspected money laundering activities facilitated by the capital market brokers have been always been under the scanner ,this could be the first major case of some top ranking brokerage and financial services sectors players being caught for the web of complex financial market transaction they weave to hide their money laundering activities ,they added .
CONCLUSION :-
Money laundering are serious concerns in the financial industry .Money laundering involves the process of making illegally obtained under funds appear legitimate , while fraudulent trading encompasses various deceptive practice in financial matter. Investors and market participants should remain vigilant, follow legal and ethical guidelines, and report any suspicious activities to the appropriate authorities. By actively engaging in efforts to prevent and combat money laundering and fraudulent trading,
stakeholders can contribute to the stability, transparency, and fairness of financial markets worldwide.
