The arrest comes three days after three terrorists including a top JeM commander were killed in an encounter with the security forces in Awantipora.
The Counter-Terrorism Department had registered 23 FIRs against Saeed and his accomplices on the charges of terror financing in different cities of Punjab province and arrested him on July 17.
The militant surrendered before a senior police officer in Awantipora area of the district, they said.
The indictment came ahead of a world financial watchdog meeting early in 2020 to decide whether to blacklist Pakistan on failure to curb terror financing.
The State Department's 'Country Report on Terrorism 2018' said that the Imran government did not restrict the Taliban and the Haqqani Network from operating in Pakistan-based safe havens.
As such, terror group LeT and its affiliates, continued to make use of economic resources and raise funds, it noted.
Danish Ahmad Channa was apprehended during an operation in Sopore area on Friday night and one pistol and one hand grenade were recovered from his possession, they said.
Literally, the Pakistan Army trains, the LeT personnel, Christine Fair from the Georgetown University said during a roundtable at the Hudson Institute think-tank.
'Pakistan has built 30 launch pads along the LoC to infiltrate militants into the regions of Karen, Gurez, and Gulmarg,' the latest inputs received by the Indian security agencies suggest.
In a video shown by Indian Army, two terrorists identified themselves as Mohammad Khalil and Mohammad Nazim who were residents of Rawalpindi in Pakistan.
In a video shared by the Army, one of the terrorists said that he along with his companion were trained in Pakistan's Kacherban for a week to cross the border from Rawalpindi.
A senior official noted that this was the seventh time that Saeed was arrested, saying that the US would look to see that Pakistan takes sustained action.
Pakistan's interior ministry issued a notification against the Saeed-founded Jamaat-ud-Dawa (JuD) charity, as well as its associated organisation, the Falah-e-Insaniat Foundation.
Defence Minister Nirmala Sitharaman on Monday warned Pakistan that it will pay a price for the terror attack on an army camp in Jammu that left five soldiers and a civilian dead in a two-day gunfight.
Musharraf's remarks came days after he declared himself the "biggest supporter" of the outlawed Lashkar-e-Taiba (LeT).