Legal hurdle in I-T action against 32,000 entities

Lack of evidence in establishing evasion charges, Sebi tells tax dept

The Securities and Exchange Board of India (Sebi) has told the income tax (I-T) department there's not enough evidence to establish a charge against 32,000 entities on tax evasion.

These companies had allegedly misused the stock exchange platform for booking long-term capital gains (LTCG), to evade taxes. The amount of evasion in question is supposed to be Rs 38,000 crore.

According to the markets regulator, the evidence and references provided by the tax authorities isn't sufficient to establish connections between the promoters of these companies, the beneficiaries and the 'last traded price' providers and 'exit' providers.

Referring some of these cases back to