Though i understand little about P-Notes.Still I believe that this huge money may reach to the Extremist for carry out their operation.Is it safe? I will appreaciate any knowledgeable information.
RE:P---NOTES
by sameerbhaga on Oct 18, 2007 04:44 PM Permalink
I too understand pretty little and hence ask more informed readers as to 'Can this method be used by a Bin Laden's sympathizer through a FII say from Dubai
RE:P---NOTES
by Abhay T on Oct 18, 2007 05:35 PM Permalink
I think this is less from most developed countries like US, UK. This is because you have to declare a lot to your bank and govt departments about your earnings. So, it is not like a cash unrecorded funds. Everything is registered and if govt departments smell even a small thing they can access all necessary information about those people. The only thing is these people are not directly registered through SEBI.
RE:RE:P---NOTES
by Abhay T on Oct 18, 2007 05:38 PM Permalink
I mean it is less likely to happen from most of the western countries like US and UK as their regulations are very strong since 911 episode. But, I'm not sure about regulation in other countries. So, in theory, yes. It is possible from some rogue state!
RE:P---NOTES
by yajuvender chauhan on Oct 18, 2007 10:32 PM Permalink
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!!!
RE:P---NOTES
by Vinayak Deshpande on Oct 19, 2007 04:50 PM Permalink
simplest misuse could be i (as a company) buy my own shares to inflate the cost and show high valuation - Using PN route as I can never be traced. Then sell these when on high to again earn and show that income as some excess income to again better the balance sheet - to further inflate.
RE:P---NOTES
by abhijit singh on Oct 18, 2007 01:50 PM Permalink
pn is not cash it is way of investment in any market without involving directly .and no way this money can go to any extremist orgnisation .it work like suppose u are frm usa and u wannna to invest in tata steel but ur not registered with sebi then u can invest through pn by indirect way coz in this case ur not require to take any permission ur investing in some us cfinancial compny which will issue pn on the basis of ur investment . so i hope now ur doubt is clear.
