New Delhi:Manipulation of stock exchanges is the new modus operandi used by terroristgroups to raise funds for their operations and fictitious companies have operatedin the Mumbai and Chennai stock exchanges.

Revealing this, National Security Advisor M K Narayanan has said some of thesecompanies were later traced to terrorist groups.

"Isolated instances of terrorist outfits manipulating the stock markets toraise funds for their operations have been reported. Stock exchanges in Mumbaiand Chennai have, on occasions, reported that fictitious or notional companieswere engaging in stock market operations," he said while addressing the43rd Conference on Security Policy in Munichlast week.

Calling for the lifting of banking secrecy and the corporate veil interrorist-related cases, he said security agencies had detected many instancesof funds received via banking channels from so-called safe locations like Dubai and UAE that wereintended for terrorist groups.

Squarely blaming certain 'official agencies' in Pakistanfor pumping millions of dollars for militancy in India, he said jehadi groups hadstarted to establish a network of legitimate businesses to fund theiractivities.

”The terrorist groups are involved in legitimate business enterprises likerestaurants, real estate agencies and shipping and use part of their proceedsto siphon off funds for their terrorist activities,” he said.