The Hindu Business Line : ‘Terror-linked’ funding seen in stock markets

New Delhi, Dec. 4 The Union Finance Minister, Mr P. Chidambaram, on Tuesday admitted that there was at least one case of alleged terrorist-linked investment in the country’s stock markets.

“Recently one case has come to our notice. It was suspected — let me repeat — suspected that this case may have some links with some persons who are under watch. This case is being investigated. I am not in a position to give any details of the case at this stage,” Mr Chidambaram told Rajya Sabha here on Tuesday.

The Finance Minister was replying to a question raised by the Bhartiya Janata Party Member, Mr Ravi Shankar Prasad, on whether the Government was aware of terrorist outfits investing in the country’s stock markets.

Mr Prasad pointed out that the National Security Advisor, Mr M.K. Narayanan, had also raised concerns that terrorist outfits could be investing in the Indian stock markets.

In February, Mr Narayanan had said at a security policy conference in Munich that isolated instances of terrorist outfits manipulating the stock market to raise funds for their operations had been reported. However, the Securities and Exchange Board of India Chairman, Mr M. Damodaran, had said in October that there was so far “no evidence” of any terror money finding its way to the stock exchanges. It was pointed out that money comes through banking channels, where ‘know your customer’ norms are in place.

The stock market indices have seen sharp rally, on the back of increased inflows from foreign institutional investors.

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