Following India's increased pressure on Switzerland to share details of suspected tax evaders, a probe has been launched into the stock market dealings of over 100 entities linked to these cases to detect the possible re-routing of black money, reports The Times of India.

Following India's increased pressure on Switzerland to share details of suspected tax evaders, a probe has been launched into the stock market dealings of over 100 entities linked to these cases to detect the possible re-routing of black money, reports The Times of India.

According to The Times of India, the entities being investigated include individuals whose names are on a list of over 700 Swiss bank account holders.

In addition, 10 to15 listed Indian firms, including a few blue-chip names and some global banks, were also being watched, the paper reported.

A senior official said that it was suspected that some of these entities may have re-routed their wealth through the stock market by using complex fund structures of certain overseas funds, including those floated by select European banking giants.

The official said that a few large global banks were being investigated although it was possible that the banks were unaware of any illicit activities.

India warned Switzerland last week that its reluctance to share tax-related information may affect economic cooperation between the two countries.

India's finance minister Shri Palaniappan Chidambaram voiced India's objection to the Swiss authorities refusal to assist in cases of alleged tax evasion in a strongly worded letter to his Swiss counterpart dated 29 April.

The Indian Government has asked Switzerland to provide account information held by Indians at HSBC's Swiss  branches.

Switzerland has rejected India's request on the pretext that the data on HSBC account holders that India received from France under a bilateral treaty was stolen and that its local laws do not permit the exchange of information where data may have been obtained illegally.

“Effective exchange of tax-related information is an extremely important constituent of the economic co-operation between India and Switzerland and the rights and duties agreed to in the DTAC (Double Taxation Avoidance Convention) between our two countries in regard to such exchange of information should be fully understood and honoured by Switzerland,” said Chidambaram.