'No proof of capital mkt being used by terrorists'

There is no evidence that money raised from the Indian capital market has been used for terrorist activities, SEBI Chairman M Damodaran said.

"We do not have any evidence that money raised from the Indian capital market has been used for terrorist activities," Damodaran told a press conference.

Responding to queries regarding National Security Advisor M K Narayanan's comments that terrorists were using the stock markets to raise funds, Damodaran said his remarks were used by the media out of context.

"His comments were not country-specific. He identified seven different channels through which terrorists raise funds, one of which was the stock market," Damodaran said.

The SEBI chief said all money that comes to the market was routed through banks.

"Banks follow 'know your customer' norms. Intermediaries in the market are also subject to follow certain norms and thus it is not possible for terrorists to make use of stock markets," he said.

He, however, said, "We don't monitor end-use of money raised. If anyone makes use of the funds for other purposes, we cannot do anything. That is not our mandate. There are other government agencies to do it."