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 (SAT), seeking urgent relief from complying with SEBI’s new foreign investor norms, according to a moneycontrol report.
The compliance window to SEBI’s new foreign investor norms closes on September 9.
Business Today was unable to verify the development independently.
Reiterating demand for an investigation into the development, Congress leader Jairam Ramesh said that both the FPIs are alleged to be violating rules that require investors to not be over-invested in a single stock.
In a post on X (formally twitter), the Congress general secretary wrote, “Two Mauritius-based foreign portfolio investors (FPIs), a part of the revelations in the still-unfolding Modani mega scam, have now petitioned the Securities Appellate Tribunal, seeking urgent relief from complying with SEBI’s new foreign investor norms before the upcoming September 9th deadline...”
“These are the very same FPIs who stand accused of participating in the Adani Group’s brazen attempt to bypass SEBI’s regulations and amass benami stakes in its own companies. These are the very firms that benefitted from SEBI's removal of the requirement to identify the “ultimate beneficial owner” of offshore funds, a decision that it was forced under public pressure to reverse in June 2023 in a tacit admission of its guilt,” he added.
The Congress leader reiterated that SEBI has a lot to explain, quite apart from the multiple conflicts of interest of its Chairperson that are now unravelling.
The party is demanding resignation of SEBI Chairperson Madhabi Puri Buch and a joint parliamentary committee (JPC) investigation into the Adani Group issue. It has raised calls for a JPC probe into the findings of the Hindenburg Research, which in its recent report raised serious allegations against the market regulator SEBI chairperson.
Ramesh’s remarks came weeks after Hindenburg Research launched a fresh attach against Madhabi Buch alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.
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.
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 Adani Group had dismissed the charges as lies, saying it complies with all laws and disclosure requirements.