The show-cause notices were issued to the five companies and four individuals for violating the RBI guidelines.
The show-cause notices were issued to the five companies and four individuals for violating the RBI guidelines.The Enforcement Directorate has issued a show-cause notice to nine business entities, some of them from Kolkata, under Foreign Exchange Management Act ( FEMA) for unauthorized hedging of foreign currencies worth Rs 905 crore on June 18, 2020. The nine entities include five firms and four individuals, namely- Santosh Promoters Pvt Limited, Pennar Trading Private Limited, Delight Suppliers Private Limited, Hadwyn Vanijya Private Limited, Metropolitan Stock Exchange, it's then CEO, MD, and directors.
In the probe, ED found that these companies were involved in dealings of future currency derivative contracts without having any underlying contract or exposure in foreign currency during the financial year 2011-12. Furthermore, they were not authorised by the BRI to do these transactions. Further, it reveals that none of the companies had an export consignment or any kind of trade or business.
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