A multi-agency team will soon begin a probe to check suspicious transactions into the country’s financial market. Official sources said the team, comprising sleuths from Intelligence Bureau and Central Economic Intelligence Bureau, among others will look into various aspects of suspicious transactions and ways to check it.

The move comes in the wake of reports of instances of routing of terror funds in the country’s stock market which were tracked by intelligence agencies.

The sources cited misuse of Participatory Note (PN), a derivative instrument issued in foreign jurisdiction by a foreign institutional investor against underlying Indian securities, by some people to route illegal money into the country’s financial system. They said the quantum of possible suspected transactions in the stock market is not worrying and many steps were being taken by the Securities and Exchange Board of India to ensure safe trading. SEBI keeps a tab on suspicious transactions via its Integrated Market Surveillance System.