Sebi has asked stock exchanges in the country to be cautious in dealings with funds and entities from Iran and North Korea fearing possible black money flow and terror financing risks from those countries into the Indian stock market,
The country’s top bourse NSE’s investigation department today said in a circular to the bourse’s members that Sebi in a letter dated May 5 has informed it about Iran and North Korea not having appropriate ‘anti-money laundering and combating the financing of terrorism (AML/CFT)’ norms.
Sebi has sent to the bourses a global caution notice against the two countries from FATF (Financial Action Task Force), an inter-governmental body that makes policies to combat money laundering and terror funding, in this regard.
The Sebi advisory to stock exchanges, who work as front-line regulators for Indian market, follows a similar warning from RBI to banks and financial institutions in March.
Source: PTI
