Sebi asks market entities to stay cautious about funds linked to Islamic State
Markets regulator Sebi on Wednesday asked stockbrokers, depositories and market entities to stay cautious about any funds or entities linked to the infamous Islamic State and Jamaah Ansharut Daulah. The regulator has informed market entities about the updated Al-Qaida sanctions list of the United Nations Security Council, which has named Islamic State in Iraq and the relevant parts of Libya and Yemen and Jamaah Ansharut Daulah.
In a circular, Sebi has asked stockbrokers, depositories and other market intermediaries to ensure strict compliance with the prevention of unlawful activities law. In addition, the regulator has asked market entities to ensure that accounts are not opened in the name of anyone whose name appears in the updated list issued by the United Nation's Security Council.
"Scan all existing accounts to ensure that no accountant is held by or linked to any of the entities or individuals included in the list and also ascertain the same for future accounts," the Securities and Exchange Board of India (Sebi) said.
Also, the market intermediaries have been asked to comply with anti-money laundering guidelines and obligations for combating terrorism financing. Under anti-money laundering guideline and obligation for combating terrorism financing, Sebi has directed all intermediaries to ensure that "accounts are not opened in the name of anyone whose name appears in the updated list of individuals and entities which are subject to various sanction measures such as freezing of assets/accounts, denial of financial services etc, approved by the security council committee established pursuant to various United Nations' Security Council Resolutions".