PN are the best routes for money laundering & they are the safest bet for extremists. People replying above has forgot to take the one fact into account that PN offers the best commission income to FII's so their regulatory norms for PN holder are not stringent enough. Considering this fact Sebi announced KYC (know your client) norms for FII's yet no concrete control has been achieved. One other area where KYC was defeated is the fact the PN are negotiable instruments so even if they were acquired by clean person at the first hand they can still go to wrong hands via transfer!!!
