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The agency made the submission before special judge Praveen Singh, while the amicus curiae appointed by the court to assist Malik sought life imprisonment, the minimum punishment in the matter.
Malik, meanwhile, told the judge that he was leaving it to the court to decide the quantum of punishment.
After hearing the arguments, the court reserved its order and is likely to pronounce it later in the day.
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Malik had on May 10 told the court that he was not contesting the charges leveled against him that included sections 16 (terrorist act), 17 (raising funds for the terrorist act), 18 (conspiracy to commit terrorist act), and 20 (being member of terrorist gang or organization) of the UAPA and sections 120-B (criminal conspiracy) and 124-A (sedition) of the IPC.
The court had, meanwhile, formally framed the charges against Kashmiri separatist leaders, including Farooq Ahmed Dar alias Bitta Karate, Shabbir Shah, Masarat Alam, Md Yusuf Shah, Aftab Ahmad Shah, Altaf Ahmad Shah, Nayeem Khan, Md Akbar Khanday, Raja Mehrajuddin Kalwal, Bashir Ahmad Bhat, Zahoor Ahmad Shah Watali, Shabir Ahmad Shah, Abdul Rashid Sheikh, and Naval Kishore Kapoor.
The charge sheet was also filed against Lashkar-e-Taiba founder Hafiz Saeed and Hizbul Mujahideen chief Syed Salahuddin, who have been declared proclaimed offenders (PO) in the case.