How Listed Companies Launder Money

How exactly does the laundering take place, using the exchange platform to convert black money into white. Here’s how.
Ambareesh Baliga, managing partner, Global Wealth Management, Edelweiss Financial Services, explained this at a Moneylife Foundation event. He described the modus operandi of money laundering through listed companies. Mr Baliga, who has about 25 years of experience in the stock market, explains how a person reroutes his money through foreign investments in illiquid stocks which are manipulated by operators.
Such manipulative trades involves an entity seeking long-term capital gains exemption by approaching an operator, who finds out an illiquid stock on the exchange platform and gets an allotment of shares done to the entity. Over a one year at least period the operator rigs the stock price up to a pre-determined level. This is when the foreign entity gets in, and gullible investors get in taking the stock higher as the earlier entity gets out. This enables conversion of unaccounted money into tax-free long term capital gains. Watch the video.
From Moneylife Foundation programme on 28 February 2014
For more on this story visit:
www.moneylife.in/article/how-l...
For more stories on price manipulation visit:
www.moneylife.in/investing/sto...
For more information visit our website : foundation.moneylife.in/
Register : moneylife.in/register/
Follow us on Facebook : / moneylifedailyclinics
Follow us on Twitter : / moneylifef

[@-Rishikesh]

Debashis according to me, you're the only hero in the scam 1992. You were not quick to judge anyone. Even the sbi pr tip, you thought the story might be planted by someone else. You played a fair game.

[@SatishTorani]

Thanks for making us aware..next time use a hot model in thumbnail to so more people are enlightened..

[@jholworld]

Reminds me of Jaspal Bhatti gol gappe stock trading video lol.

[@sohailshaikh1334]

00:25

[@chinmaya.6934]

1st column 3rd seat. It is renowned personality mr. achyut godbole..!!!!

[@malveecaverma2940]

This is an eye-opening channel, else retail investors would never come to what's cooking behind. Thanks for sharing such informative content.

[@abhinavsirohi]

& I've been slogging 9 to 5..

[@vijaymujumdar5617]

They fully tax fixed deposit interest income of frugal senior citizens for whom this is the only source earning. But they make loopholes for income from speculative investment of crooks to escape tax net and other scrutiny. Politicians operate on edict "chor chor mausere Bhai".

[@sushilkumarsaraf4399]

I do not understand why are the only politicians being blamed. Don't they come from the same society where all others are also members. Who becomes a leader, the person who has the most qualities of the society so, while all the others also have the same qualities, the leader has the most. It is the society which has to change, means each of it's members. The leader is just representetive/mature sample of the society. Also, s/he does not operate in isolation. Others connive with him/er for the success of the scheme.

[@madansharma2700]

Thanks for making sensible points. The so called system needs so much cleaning. It could be very frustrating slow and painful to do it. But at least the problem is properly highlighted by forum and discussions like these. Thanks for also suggesting remedy.

[@kvr4756]

Credit chartered accountants

[@arnabbhattacharya6579]

Retail investors have got to be more cautious about the stock....better pay more for a good blue chip like HDFC or TCS rather than getting stuck in the quicksand of penny stocks

[@ramyasri6093]

This is news to me. Thanks for it

[@csptravels]

Helpful... !!!

[@rajalakshmisundaresan9623]

Bold and great revelations.

[@NDEC_2991]

The route remains open even now under Jaitley and Modi. Sad

[@washfi]

All politician are corrupt....

[@amarendrabhowmick8896]

Fantastic!

[@lalitgandass2519]

Thanks

[@amitedits2878]

Wow I am able to Mr. Achut Godbole behind.