New Delhi, Aug 11 - There was no possibility of terror outfits manipulating the country's stock market, the government informed the Supreme Court Tuesday.

'The government, at present, does not have any reliable, credible information of any surreptitious entry of a terrorist outfit into the stock market,' the Department of Revenue said in a fresh affidavit before the Supreme Court which is hearing a lawsuit seeking direction to the government to retrieve the Indian black money stashed abroad.

'The Board (Securities and Exchange Board of India - SEBI) as well as stock exchanges, however, have been administered sufficient caution to look out for any suspicious and irregular entrant into the stock market activity,' said the affidavit filed in response to a public interst lawsuit by former law minister Ram Jethmalani.

Alleging a nexus between Indian black money stashed abroad and terror funding, the lawsuit has accused the government of sitting idle on the issue of retrieving such black money.

'Upon enquiry, it has been confirmed by the Bombay and Chennai Stock Exchanges that no fictitious or notional companies can be stated to be involved in stock market operations,' a second government affidavit filed in response to the lawsuit said.

Elaborating on the SEBI mechanism for regulating the Foreign Institutional Investors' (FIIs) investments into the stock market, the government ruled out the need to ban participatory notes (PNs).