New Delhi: Noting that September 9 was the deadline for Foreign Portfolio Investors to disclose the beneficial owners of their holdings, the Congress on Wednesday asked SEBI if those implicated in the Adani matter have done so and why has it taken the capital markets regulator 18 months to enforce the new norm.
Congress general secretary in-charge communications Jairam Ramesh said it is September 11 today, two days after the SEBI's September 9 deadline for Foreign Portfolio Investors (FPIs) - those who stand accused of holding concentrated portions of their equity portfolio in a single corporate group - to disclose the beneficial owners of their holdings.
"We had raised this issue a few days ago, in light of information that two Mauritius-based FPIs that were part of the revelations in the still-unfolding Modani mega scam, have petitioned the Securities Appellate Tribunal to seek urgent relief from complying with these new foreign investor norms," he said in a post on X.
"Some questions to the SEBI on the current status of these disclosures - have all FPIs required to comply with these norms disclosed the details of their ultimate beneficial owners to SEBI? Which FPIs have complied, and which ones have failed to do so?" the Congress leader said.
In particular, have the FPIs implicated in the "Modani mega-scam" revealed the details of their owners to SEBI, he asked.
"As part of its initial rulings on the Modani mega scam, the Supreme Court had mandated that SEBI investigate the violations by these FPIs within a timespan of two months - why has it taken SEBI 18 months to enforce this new norm?" Ramesh said.
Did this extended timespan of 18 months between the Supreme Court ruling and the compliance date for the FPIs allow these funds and their owners to divest from stocks and frustrate the transparency-seeking intent of these norms, he asked.
"If so, what is SEBI's plan to ensure that norms of integrity are met, especially in the investigation into the Modani mega-scam?" Ramesh said.
His remarks come days after the Congress said the SEBI investigation into "the Adani Group's brazen attempt" to bypass regulations is still languishing and the capital markets regulator has a lot to explain.
Ramesh had attacked the SEBI on Sunday after a media report claimed that two Mauritius-based foreign portfolio investors (FPIs), who were mentioned in the January 2023 report on the Adani Group by short-seller Hindenburg Research, have petitioned the Securities Appellate Tribunal, seeking urgent relief from complying with SEBI's new foreign investor norms.
This also comes after Hindenburg Research launched a fresh broadside against market regulator SEBI chairperson Madhabi Buch, alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.
SEBI Chairman Buch and her husband have denied the allegations levelled against them as baseless and asserted that their finances are an open book.
Adani Group had also termed Hindenburg Research's allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the SEBI chairperson or her husband.
The Congress has been alleging financial regularities against the Adani Group and favours being given by the government to the conglomerate to augment its profits.
The opposition party has been persistent on its attack on the government, since Adani Group stocks took a beating on the bourses in the wake of the Hindenburg Research making a litany of allegations, including fraudulent transactions and share-price manipulation on the conglomerate headed by industrialist Gautam Adani.
The Adani Group had dismissed the charges as lies, saying it complies with all laws and disclosure requirements.
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