In New Delhi, the Supreme Court told TMC MP Mahua Moitra to present her concerns to SEBI, which is the body that oversees investment funds in India. Moitra wants SEBI to make it mandatory for alternative investment funds (AIFs) and foreign portfolio investors (FPIs) to openly disclose who is truly behind these investments and what companies they are investing in.
While hearing her request, the judges, Justices B V Nagarathna and Satish Chandra Sharma, said Moitra should make a detailed request to SEBI about these issues.
Moitra’s advocate, Prashant Bhushan, pointed out that while regular mutual funds must reveal their investors, AIFs and FPIs do not have the same obligation. Currently, SEBI only requires funds with assets over ₹50,000 crore to disclose their investors’ identities to the board, but not to the public. Below this amount, there are no disclosure requirements at all.
SEBI believes that revealing this information could invade people’s privacy. The judges asked if Moitra had already made her concerns known to SEBI, suggesting that SEBI has not had a chance to consider her worries properly.
Bhushan said they have already made a decision not to disclose information, claiming it breaches privacy rights. The court emphasized that the petitioner can make a formal representation to SEBI regarding her concerns. They said, if SEBI does not respond in a reasonable time, Moitra has legal options available.
Moitra’s plea aims to bring transparency and help investors understand more about India’s financial markets. She expressed that the rapid growth of AIFs and FPIs raises important transparency issues, as they do not follow the same strict rules as mutual funds. This could open the door to market manipulation, money laundering, and tax evasion, according to her plea.
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