Thursday, May 19, 2022 07:45 [IST]
Last Update: Thursday, May 19, 2022 02:11 [IST]
GANGTOK,: Sikkim Vigilance Police on Wednesday registered a regular case under sections 120B (punishment of criminal conspiracy), 420 (cheating), 468 (forgery for purpose of cheating) and 471 (using as genuine a forged document) of IPC on the allegation of trading activities by Sikkim-based investors on MCX platform.
It is alleged that some Limited Liability Partners (LLP) company and private individual/traders from other States of the country have been doing high frequency trading on MCX platform either using identity of Sikkim residents or using co-location of Sikkim illegitimately taking undue advantage of the Income Tax and Stamp Duty exemption given to the people of Sikkim, said Sikkim Vigilance Police on Wednesday in a press statement.
A deputy superintendent of police rank officer has been tasked with the investigation on the MCX allegations.
“On getting directions from the State government, the Vigilance department swung into action and promptly collected documents and information running into several thousand pages from different offices like MCX, Registrar of Companies, banks, SEBI, other commodity exchanges, offices of the Government of Sikkim and made quick spot verifications at several places,” the release states.
As per the Vigilance Police, several brokers and parties opened offices, some only on paper, in the State of Sikkim after July 2000 and started doing mostly online transactions in different commodities through MCX.
“The matter was under the radar of Sikkim Vigilance Police since the issue surfaced in March 2022. Since then, the trade on MCX saw huge dip,” said the Vigilance Police.