Monday, October 26, 2009

SEBI asks stock exchanges to watch out for UN-listed terror funding entities

Market regulator, the Securities and Exchange Board of India (SEBI), has asked all stock exchanges and securities intermediaries to inform "within 24 hours" the home ministry if they find any client, whose particulars match with UN-listed terror funding entities, including the name of underworld don Dawood Ibrahim.

"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 the Ministry of Home Affairs," the market regulator said in a statement.

The SEBI said in case any customer's details match with 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. (IANS)

According to laid down rules, on receipt of particulars, the home ministry would initiate a verification to be conducted by the state police and the central agencies. The verification would 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 would be issued within 24 hours without prior notice to the entity concerned, the Sebi said.

As per the UN Security Council Resolution 1373, on receiving requests from foreign countries, countries are obliged to freeze, without delay, the funds or other assets of persons who commit, or attempt to commit, terrorist acts.

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