Mumbai:
Market regulator, the Securities and Exchanges Board of India (SEBI), has directed all stock exchanges and other securities intermediaries to keep a strict watch on UN-listed terror funding entities, including the name of underworld don Dawood Ibrahim.
The SEBI has also asked the securities intermediaries to inform the Union Home Ministry within 24 hours if they find any client, whose particulars match with those of the entries listed by the United Nations.
"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.
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 5 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.
"To give effect to the requests of foreign countries under the UN Security Council Resolution 1373, the Ministry of External Affairs shall examine the requests made by the foreign countries and forward it electronically, with their comments...(to Home Ministry) for freezing of funds or other assets," the market regulator said.
The official concerned at the Home Ministry would examine the request within five working days and satisfy itself to suspect or believe that the proposed designee is a terrorist, finances terrorism or a terrorist organisation.
Besides, in case a client is not a designated person, he would have to apply, the SEBI said, for unfreezing of funds with requisite evidence on which the Home Ministry would initiate a verification and order for unfreezing within 15 working days.
The SEBI has also asked the securities intermediaries to inform the Union Home Ministry within 24 hours if they find any client, whose particulars match with those of the entries listed by the United Nations.
"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.
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 5 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.
"To give effect to the requests of foreign countries under the UN Security Council Resolution 1373, the Ministry of External Affairs shall examine the requests made by the foreign countries and forward it electronically, with their comments...(to Home Ministry) for freezing of funds or other assets," the market regulator said.
The official concerned at the Home Ministry would examine the request within five working days and satisfy itself to suspect or believe that the proposed designee is a terrorist, finances terrorism or a terrorist organisation.
Besides, in case a client is not a designated person, he would have to apply, the SEBI said, for unfreezing of funds with requisite evidence on which the Home Ministry would initiate a verification and order for unfreezing within 15 working days.
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