Market regulator SEBI has directed all stock exchanges and securities intermediaries to keep a strict watch on UN-listed terror-funding entities, including the name of underworld don Dawood Ibrahim.
The Securities and Exchange Board of India (SEBI) has asked securities intermediaries to inform the home ministry within 24 hours if they find a client whose particulars match with those of the entries listed by the UN.
“In the event, particulars of any of customers match the particulars of designated individuals or entities, stock exchanges, depositories and intermediaries shall immediately, not later than 24 hours ... Inform full particulars ... (to) Ministry of Home Affairs,” SEBI said in a statement.
The regulator said in case any customer details match the particulars of designated individuals or entities in the list “beyond doubt”, the securities intermediaries “would prevent designated persons from conducting financial transactions”, under intimation to the Home Ministry.
As per the rules, on receipt of the particulars, the ministry will initiate a verification to be conducted by the state police and central agencies. This will be completed within five days.
On confirmation that the properties are owned by or held for the benefit of the designated individuals/entities, an order to freeze the assets will be issued within 24 hours without prior notice to the entity concerned.
According to the UN Security Council Resolution 1373, on receiving requests from foreign countries, countries are obliged to freeze — without delay — the funds or assets of persons who commit, or attempt to commit, terrorist acts.