Such transactions are suspected to have taken place in case of 15-20 Indian companies, a senior official said, but refused to disclose their names as also that of the banks saying it might impede the investigations.
Some portfolio managers at some banks, which have a significant presence in the Indian financial markets, could have helped clients route money back into the country as foreign funds using investment vehicles across jurisdictions.
So far, the focus of this Supreme Court monitored probe has mainly remained on the persons and entities from India suspected to have stashed illicit wealth in overseas locations including Swiss banks.
However, as the probe moves further, including by a Special Investigation Team (SIT) with two former Supreme Court judges as Chairman and Vice-Chairman along with members from various investigative and regulatory agencies, the banks are turning wary about possible action against them going ahead.
Senior executives at various banks, including three large ones headquartered in Switzerland and the Swiss units of some major European banks, said that they are considering making financial provisions as anticipatory measures to deal with any action involving them in India's black money probe.
The banks are also said to be lobbying with the Swiss government that it should ask the Indian authorities to put in place a ‘settlement' mechanism to deal with the suspected entities, including the banks and their customers, before seeking any assistance in its black money probe said to be advising their clients to use various ‘layering' methods, including by way of share market and export-import routes, to move funds from Switzerland to other locations including India.
