Rome : Concerned over terror groups investing in stock markets India on Tuesday said, stock markets have emerged 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.
“It is a cliche to say that terror-funding is the lifeblood of terrorism. Credible intelligence suggests that terrorist outfits are investing in stock markets through spurious companies, setting up fictitious businesses and laundering money,” Home Minister Sushilkumar Shinde said, addressing the Interpol General Assembly here.
Shinde said, the utmost important task was to detect the sources of such finance, including the fake currency variant, its conduits, modus-operandi and stanching its flow. “Here again the Interpol has to play a very crucial role,” he said.In September, market regulator Securities and Exchange Board of India had said as many as 35 stock brokers have been probed by it for possible lapses in controls related to money laundering and terror financing.
The inspections by the SEBI follow actions taken by stock exchanges and depositories against more than 300 market entities for violations and discrepancies related to Anti-Money Laundering and Combating Financing of Terrorism (AML and CFT) regulations in the 2011-12 fiscal. -PTI