No more scheming: Bourses step up scrutiny of investors from Sikkim

Asked to re-verify clients and check order locations, following reports of tax evasion

Stock exchanges have increased scrutiny of investors domiciled in Sikkim, following reports of illegal routing of investments through the Northeast state to evade taxes.

The National Stock Exchange (NSE) has directed its trading members (brokers) to re-verify and certify investors who have declared their permanent address as Sikkim. Further, brokers have been told to maintain a vigil on the location of devices used by Sikkim-based clients for trading to ensure these are genuine investors from the region.

“Trading members are required to send the identity and address proof of all the newly onboarded clients (irrespective of whether the permanent account