New Delhi, Oct. 28 (PTI): “Unscrupulous persons” residing in India were suspected to be operating behind the facade of overseas corporate bodies (OCBs), many of which preferred Mauritius as a favourite haven, the Joint Parliamentary Committee inquiring into last year’s stock scam has said.
“Some of the OCBs, according to the Sebi investigation, had very nominal share capital ranging from $ 1 to $ 10,000 and yet their investment in the Indian capital markets is very large, running into millions of dollars,” the report said.
The net outward remittances of 13 OCBs between April 1 1999, and March 31 2002, stood at about Rs 3,850 crore in rupee terms, the JPC was told.
The issue was also taken up by the Enforcement Directorate, which deputed a team of officers to Mauritius to conduct enquiries, the report said.
Earlier, when Sebi asked the Mauritius Offshore Business Activities Authority (MOBAA) to ascertain the possible role of these OCBs in price manipulation in the Indian securities market, the latter reportedly expressed its inability to do so, the JPC said in its draft report which is to be finalised soon.
“Sebi got in touch with MOBAA and requested it to provide information regarding the names of the actual beneficiaries of these OCBs/sub-accounts, sources of funds which have been used for carrying out transactions and how the funds remitted to Mauritius have been used,” the report said.
Two advance copies of the request with regard to the enquiries in respect of First Global Mauritius Ltd and 13 other OCBs were delivered in the office of the director, economic crime office at Mauritius on December 7 last year, after holding several meetings with them.
Though a letter rogatory (LR) was also issued from India with respect to First Global Mauritius, the Supreme Court of Mauritius by its order issued in February 2002 reportedly turned down the request, the JPC was told.