The Home Ministry on Wednesday contradicted the statement made by its minister Sushil Kumar Shinde on terror groups investing in stock exchange. Replying to a question in the Rajya Sabha, MoS, Home, R P N Singh said they “have not received any specific input that terrorists are investing money in share market”.
Singh said, “The suspicious transaction reports received from securities market intermediaries suspected to be linked to financing of terrorism is subject to detailed assessment and examination by Central intelligence and investigation agencies. The financing operations in the stock markets are carried out through banking channels. The nature of the funds flowing into stock markets would be reflected in the accounts opened with the banks together with the customer due diligence norms applicable to such accounts.” He added, “In addition, SEBI registered intermediaries are required to follow stringent Know Your Customer norms on an ongoing basis and are required to file suspicious transaction reports to Financial Intelligence Unit in case of suspicious activities of their clients.”
Shinde while addressing the Interpol General Assembly in Rome on November 5, had said that stock markets were emerging as a new mode for terrorists to route their illicit money into the country’s economy and leverage it to carry out their nefarious design.