Money Laundering: A Critical Analysis With Special Reference To Securities Market In India

Md Shoaib, School of Law, Galgotias University


This research work focuses on money laundering in the Securities Market of India. The objectives of the study are to establish the causes of money laundering in the Securities market. Financial crimes have caused the downfall of securities market in India. Massive sums of money are illegally obtained every year. For these illegally acquired funds to appear legitimately acquired and become usable, a procedure known as laundering is required. The International Monetary Fund has estimated that the global total of money laundering may range from two to five percent of the global gross domestic product, despite the fact that it is impossible to determine the actual number. The securities market has become one of the well known method used by money launderers to launder their illicit proceeds. The credibility of international financial institutions is at risk from money laundering. All of the nations that are a part of the global financial system are vulnerable to danger as a result of the financial system being undermined. The purpose of this paper is to clarify how the securities market and money laundering are related. It briefly explores money laundering from the viewpoint of the Securities market. The preventive measures are carried out by the Securities and exchange board of India (SEBI) to inhibit the infiltration of illicit money into the securities market. These include; Know your customer (KYC) norms, carrying out client due diligence (CDD), reporting any transactions that appear to be suspicious to the FIU-IND and keeping financial transaction records.

Keywords: Money Laundering, Securities market, KYC norms, Anti money laundering (AML).

Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878


Accessibility: Open Access

License: Creative Commons 4.0

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​All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.


The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.