In recent times, terror groups have evolved into hybrid organisations combining focus on terror attacks with a high level of financial skills which are seen with global criminal syndicates. Thus, there is a strong possibility that criminally laundered funds are routed back to India through the stock markets by groups linked to terrorism.
Money laundering as such is a victimless crime; but the use of stock markets for money laundering by transnational Indian criminal and terror groups is certainly a matter for grave concern that could propagate violence against an unsuspecting public, besides increasing unhealthy volatility in the markets. This aspect needs to be studied closely. Given the lack of transparency in India, it would be very difficult quantify the level of investment; nevertheless such a study has to be undertaken to understand the implications of the stock market route to terror funding. While there is no evidence in the public domain to suggest direct involvement of terror groups investing in the stock markets, it would be in India’s interest to understand and accept that such a scenario is certainly possible given the facts.
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