Mumbai (Agencies): In the midst of a raging debate on flow of black money in and out of the country, market regulator Sebi on Monday said it is keeping a tab on source of funds coming into the capital market.

"It is important for us to know from where the money is coming," Sebi chief C B Bhave told reporters after a board meeting of Sebi here.

He said Sebi should be in position to provide information about the source of money in case a government department wants to know about it.

He, however said it is the Income Tax department which could ascertain if the money invested is illegal or not.

He said the 'know your customer (KYC)' norms have been implemented for market intermediaries to make it possible to know which entity or individual has invested money in the market.

The Indian government is facing intense pressure from opposition, as also the courts, to act tough against those who have amassed illicit wealth in foreign countries that have strict secrecy rules.