Click to play videoNew Delhi: Market regulator, the Securities and Exchange Board of India (SEBI), has asked all stock exchanges and securities intermediaries to inform "within 24 hours" the Home Ministry if they find any client, whose particulars match with UN-listed terror funding entities.
The SEBI said in case any customer's details match with the particulars of designated individuals or entities in the list "beyond doubt", the securities intermediaries "would prevent designated persons from conducting financial transactions" under intimation to the Home Ministry.
Those under scrutiny include front companies for underworld don Dawood Ibrahim.
National Security Advisor MK Narayanan had earlier told CNN-IBN that terrorists could be turning to the stock markets to fund their activities.
The use of markets to fund terror is not new. Recently there were reports that the main accused in the Wall Street scam, Raj Rajaratnam, may have routed funds to the LTTE.
Rajaratnam donated large amounts of money he had illegally amassed in the US stock markets to a charity, which were reportedly given to LTTE.
India, incidentally, is pitching for a membership of the inter-government body, Financial Action Task Force (FATF), which combats international money laundering and terror financing.
SEBI's advice for greater vigil in the markets could help India enlist the support of the FATF in cracking down on terror groups.
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