Round tripping
* Round tripping occurs when an investor sends money from one country to another and then routes it back to the original country dressed up as foreign capital
* Global Depository Receipts are instruments used by firms to raise funds from the overseas capital market
* The Income Tax Department has initiated a study on companies that have issued GDRs over the last five years
* The department feels that almost half of these companies could be front entities employed for round-tripping
* According to sources Luxembourg is emerging as a favoured nation for this exercise after Mauritius and Singapore
* Data available with the Sebi shows that most of the GDR-issuing companies are based out of Luxembourg, Singapore and London
* Round tripping occurs when an investor sends money from one country to another and then routes it back to the original country dressed up as foreign capital
* Global Depository Receipts are instruments used by firms to raise funds from the overseas capital market
* The Income Tax Department has initiated a study on companies that have issued GDRs over the last five years
* The department feels that almost half of these companies could be front entities employed for round-tripping
* According to sources Luxembourg is emerging as a favoured nation for this exercise after Mauritius and Singapore
* Data available with the Sebi shows that most of the GDR-issuing companies are based out of Luxembourg, Singapore and London
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