Seeking to root out undeclared wealth, India’s market regulator has sent letters to some large wealth managers operating out of low-tax centres like Hong Kong and Singapore to try and bring them under its remit, people with knowledge of the matter said.
India’s government is cracking down on tax evasion as a means of boosting revenues, and in October said the state was prosecuting several individuals on suspicion of having undeclared assets outside the country.
In a significant new move by Prime Minister Narendra Modi’s government, the Securities and Exchange Board of India (SEBI) has recently started to reach out to international private banks, asking them to register their offshore units with the Indian watchdog if they are soliciting business in India, five people with direct knowledge of the matter told Reuters.