National Security Adviser MK Narayanan believes there are isolated instances of terror groups manipulating the stock market to raise funds for their operations. According to him, stock exchanges in Mumbai and Chennai have, on occasions, reported that fictitious or notional companies were engaging in stock market operations.

Narayanan said terrorists, who have launched number of attacks in India killing hundreds of people, as well as Sri Lanka’s Tamil Tigers had in some proportion funded activities through legitimate businesses, including restaurants, real estate and shipping. He said;

Many instances of funds received via banking channels from so-called safe locations such as Dubai and UAE (United Arab Emirates) intended for terrorist organisations have been detected by Indian counter-terrorist agencies.

The last major attack in India was in the month of July last year when bombs planted on local trains and at rail stations in Mumbai exploded, resulting in death of 186 people.

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