The Congress on Thursday demanded that the Securities and Exchange Board of India (SEBI) should ensure complete disclosure of ownership of Foreign Portfolio Investors from retrospective effect arguing that the rules were eased in 2018 to benefit the Adani group. This comes a day after the market regulator proposed mandating additional disclosures around ownership of high-risk Foreign Portfolio Investors (FPIs). “There were strict requirements to identify the ultimate beneficial owners of foreign funds in the share market previously. But these rules were diluted on December 31, 2018 and then deleted on August 21, 2019 by SEBI. When the rules were abolished, shell companies were able to invest freely. As a result, SEBI has no information about where the Rs 20,000 crore came from in the Adani-linked shell companies,” Congress communication head Jairam Ramesh told reporters. “Now, SEBI has released a consultation paper asking for feedback to once again strengthen disclosure requirements. The SC committee constituted on the Adani issue has also said that the abolition of rules has resulted in SEBI’s failure to properly investigate the allegations against Adani. Transparency was abolished by changing rules in 2018 and 2019 for the benefit of a few select cronies,” he alleged. The real question, he said, is “who is the owner of the Rs 20,000 crore that have been invested via shell companies in the Adani group. Only a JPC can bring out the truth of the Modani scam. We will continue to demand it,” he said. “The question is whether the rule will be applicable in future or this rule will be applicable on those investing in the country in the last 5-6 years,” Ramesh asked. “The big question is will it apply retrospectively. Whatever will happen in the future everyone knows, but what about the investment that has happened after 2018, will the rule apply to them…..If you are asking our position, yes it should apply,” he said.
