There is an act called the Prevention of Money Laundering Act 2002 (PMLA). The purpose of this act is to prevent the financing of terrorism and to prevent the laundering of money, i.e., to legalize, officialize, or canalize the money generated from illegal activities like drug trafficking, organized crimes, hawala rackets, and other serious crimes. This act is part of the global measures being taken by all countries under the initiatives of UN agencies. It is applicable to all SEBI registered brokers/sub-brokers and other financial institutions dealing in any kind of financial assets. Entities to whom this act is applicable have an obligation to report certain kinds of transactions routed through them to the FINANCIAL INTELLIGENCE UNIT, a department specially set up to administer this act under the Ministry of Finance. The transactions that are supposed to be reported include cash transactions above rupees ten lakhs or series of cash transactions below ten lakhs but aggregating to above ten lakhs in a month or its equivalent in any foreign currency. Additionally, transactions that may not be in cash but are suspicious in nature should also be reported. SEBI has issued master circular no. ISD/AML/CIR-1/2010 dated February 12, 2010. You are requested to go through the same for more details.