New Delhi, May 15: Finance Minister P Chidambaram today denied that terrorists operating from tax haven are routing their investments and wreaking havoc on the stock market.
Adequate systems and safeguards are in place to deal with illegal activities on the Indian stock market, he said while replying to a question in the Rajya Sabha.
The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) keep a close watch on money movements, said Mr Chidambaram.
All foreign institutional investors (FIIs) are registered with the SEBI. Under regulations, an FII may issue participatory notes (PNs) with Indian instruments (equity/debt/derivatives) as the underlying securities, subject to the subscriber being a regulated entity.
Further downstream issuance of PNs can also be done to regulate entity, said Mr Chidambaram. The regulations also require FIIs which issue PNs to file a report in a prescribed format by each month-end.
Besides, the Foreign Exchange Management Act (FEMA) 1999 has provisions to deal with cases of unauthorised transfer of foreign exchange, including through hawala.
At the international level, said the Finance Minister, India is a member of Asia Pacific Group on money laundering and combating of financing of terrorism. The country has observer status in its financial action task force.
UNI
Adequate systems and safeguards are in place to deal with illegal activities on the Indian stock market, he said while replying to a question in the Rajya Sabha.
The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) keep a close watch on money movements, said Mr Chidambaram.
All foreign institutional investors (FIIs) are registered with the SEBI. Under regulations, an FII may issue participatory notes (PNs) with Indian instruments (equity/debt/derivatives) as the underlying securities, subject to the subscriber being a regulated entity.
Further downstream issuance of PNs can also be done to regulate entity, said Mr Chidambaram. The regulations also require FIIs which issue PNs to file a report in a prescribed format by each month-end.
Besides, the Foreign Exchange Management Act (FEMA) 1999 has provisions to deal with cases of unauthorised transfer of foreign exchange, including through hawala.
At the international level, said the Finance Minister, India is a member of Asia Pacific Group on money laundering and combating of financing of terrorism. The country has observer status in its financial action task force.
UNI
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