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SEBI’s new disclosure norms for FPIs ‘a public admission of guilt’: Congress
Jairam Ramesh said they are also awaiting the SEBI report slated for Aug 14 that would answer key questions on origins of the ₹20,000 cr “opaque foreign funds” flowing into Adani group of companies
The Congress on Friday said SEBI’s (Securities and Exchange Board of India) decision to mandate enhanced disclosure requirements for some foreign portfolio investors points to a “clear admission of guilt” by the market regulator in wake of Supreme Court’s expert committee recommendations.
In a statement, Congress general secretary Jairam Ramesh, said that SEBI’s investigation has limited scope and only a joint parliamentary committee (JPC) probe can fully unravel the Adani “scam”.
Sharing the statement on Twitter, Ramesh said, “.... the actions it (SEBI) has taken since the Supreme Court’s Expert Committee report on the Adani Megascam pointing to a clear admission of guilt by the regulatory body.”
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The Congress leader said SEBI accepts that it needs to do more to prevent the “circumvention of regulations such as the requirement for Minimum Public Shareholding”, precisely the allegation made against the Adani Group.
“It has, therefore, mandated “additional granular level disclosures regarding ownership, economic interest, and control” for foreign portfolio investors (FPIs) who (1) hold more than 50% of their India assets in a single corporate group or (2) more than ₹25,000 crore in Indian markets, he said.
“None of these steps would have been possible without the wide public outrage over the Modani revelations and the Congress party’s relentless ‘Hum Adanike Hain Kaun-HAHK series’ of 100 questions that put the government under tremendous pressure to act. Despite desperate attempts by interested parties to paint the Expert Committee’s report as a ‘clean chit’, all the actions taken subsequently by SEBI indicate an admission of guilt and a belated attempt to increase transparency regarding financial flows,” Ramesh said.
The leader added that they are waiting for the SEBI’s report which will be out on August 14.
“We look forward to clarity on important questions such as the origins of the shady ₹20,000 crore of opaque foreign funds that have flowed into Adani companies,” Ramesh noted.
“As we have always said, the Expert Committee’s and SEBI’s own investigations are limited in scope. Only a JPC can fully unravel the scam”, he added.
The new norms will be applicable for FPIs that concentrate holdings in a single corporate group.
The move is aimed at preventing possible circumvention of Minimum Public Shareholding (MPS) requirements and potential misuse of the FPI route to guard against the inherent risks of opportunistic takeover of Indian companies.
It also comes against the backdrop of the recent Adani-Hindenburg saga.
During its meeting on Wednesday, the SEBI board also approved a proposal to amend the FPI rules.
Under the proposed framework, FPIs with concentrated single group equity exposures or significant equity holdings will be mandated to make additional granular disclosures.
(With PTI inputs)
