Ruling out surreptitious entry of terrorist outfits into the stock market, the Centre on Tuesday told the Supreme Court that the stock exchanges has been warned to look out for any suspicious entry.
“The government, at present, does not have any reliable, credible information of any surreptitious entry of terrorist outfit into the stock market,” the Department of Revenue said in a fresh affidavit filed in the Supreme Court. This is the second affidavit filed by the government on the issue.
The court is seized of a public interest petition filed by former law minister Ram Jethmalani and five other citizens alleging links between money belonging to Indian citizens stashed away in foreign banks and terrorist funding. They accused the government of not taking action to bring back black money.
However, the government said: “The Board (Security and Exchange Board of India) as well as stock exchanges have been administered sufficient caution to look out for any suspicious and irregular entrant into the stock market activity.”
“Upon enquiry, it has been confirmed by the Bombay and Chennai stock exchanges that no fictitious or notional companies can be stated to be involved in stock market,” it said.
The government elaborated on the mechanism for regulating the flow of money coming into the stock market through Foreign Institutional Investors by SEBI and ruled out the possibility of banning participatory notes.