Terrorist outfits are investing in the Indian stock market through spurious firms, home minister Mr. Sushil Kumar Shinde said at an Interpol General Assembly meeting in Rome on recently.
Calling terror funding the lifeblood of terrorism, Mr. Sushil Kumar Shinde said he had credible intelligence to back his words.
Credible intelligence suggests that terrorist outfits are investing in share markets through spurious firms,setting up fictitious businesses & laundering money, Mr.Sushil Kumar Shinde said.
He asked Interpol to play a crucial role in helping India to check this. The utmost importance of detecting the sources of such finance including the fake currency variant, its conduits, modus-operandi & stanching its flow cannot be lost on us, Mr. Sushil Kumar Shinde has said.
In 2007,then NSA MK Narayanan had raised an alarm on terror money in the stock markets when he said at a conference in Munich that there were isolated incidents of terrorist outfits manipulating the stock markets to raise funds.
Stock exchanges in Mumbai & Chennai have, on occasions, reported that fictitious or / notional companies were engaging in stock market operations, Mr. Narayanan then said.
However, the finance ministry denied this then. However, in December 2007, while addressing the Rajya Sabha, then finance minister P Chidambaram admitted that the central government was tracking at least one case of suspected terror money being laundered in the stock market.
The conclusive stand on the matter finally came in December last year (2012) when the minister of state for finance, Mr. Namo Narain Meena, said Parliament that at least 10 cases of suspected terror funding in share markets were indeed being probed & steps were being taken to prevent flow of terrorist funds into stock markets.
Financial Intelligence Unit-India (FIU-IND ) has reportedly received Suspicious Transaction Reports (STRs) from intermediaries, which includes intermediaries of stock market such as stock brokers & asset management companies.
Some such STRs have been linked to money laundering & terrorist financing. These cases were disseminated to intelligence agencies for further investigation, Mr. Namo Narain Meena said last December (2012).
Five STRs suspected to be linked to terrorist financing were referred for probe in 2009 - 10, four in 2010 - 11 and one in 2011 - 12.Meena then added that SEBI registered intermediaries such as Mutual Funds , Depository Participants & Stock Brokers follow the KYC (know your client) guidelines laid down by SEBI when customers are registered.India is a member of Financial Action Task Force, an international inter-governmental body for setting standards to combat money laundering and financing of terrorism.
FATF has issued 49 recommendations to prevent the abuse of financial systems.
Src: ET
Yes, it is true & it is very difficult to find them. They are using Our stock market for speedy finance.
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