Seeking clarification from mutual funds on allegations of 'dividend stripping', capital markets regulator Sebi chairman UK Sinha said action will be taken against those violating rules.
The government has sought a report from the Securities and Exchange Board of India on possible adoption of dividend stripping plan by mutual funds for possible tax evasion and it has sought clarification from mutual funds on the issue, he said.
"Our rules are very clear and if they are followed it is impossible for them to do any stripping," Sinha told PTI.
