No terror money in stocks, Centre to SC

The Department of Revenue in a fresh affidavit said “the Government, at present, does not have any reliable, credible information of any surreptitious entry of terrorist outfit into the stock market.’’

In response to the earlier direction in the public interest litigation (PIL) filed by legal expert Ram Jethmalani, retired IPS officer K P S Gill and others, 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 operations.”

The government elaborated on the mechanism for regulating the flow of money coming into the stock market through FIIs by SEBI and ruled out the possibility of banning participatory notes.

“In view of the fact that participatory notes are market instruments and when they are created and traded abroad it is not possible to ban the issue of the said instrument,” it said stating the law in this regard.

The Centre said all Foreign institutional Investors (FIIs) were mandated to report at the end of every month all information relating to participatory notes issued by them, including the names of the subscriber to the said participatory notes.