Congress Queries SEBI on Delays in FPI Disclosure Compliance

Congress has raised concerns over SEBI's delay in enforcing new norms requiring Foreign Portfolio Investors (FPIs) to disclose beneficial ownership. Despite a Supreme Court order mandating a two-month investigation timeline in the 'Modani mega-scam,' SEBI took 18 months, stirring allegations of regulatory lapses and insufficient transparency.

Congress has voiced concerns about SEBI's prolonged delay in implementing new norms for Foreign Portfolio Investors (FPIs) to disclose beneficial ownership. These norms, introduced following the 'Modani mega-scam,' were to be enforced within a two-month timeframe as per the Supreme Court's directive.

However, SEBI took 18 months to enforce these rules, prompting Congress to question the regulator's effectiveness and transparency. Senior Congress leader Jairam Ramesh called out SEBI on the issue, highlighting that even after the September 9 deadline, the status of FPI compliance remains unclear.

This delay has raised suspicions that the extended timeline may have allowed implicated entities to divest their holdings, undermining the norms' intent for transparency. Congress also referenced fresh allegations from Hindenburg Research against SEBI Chairperson Madhabi Buch and her husband, questioning the integrity of the regulatory process.

(With inputs from agencies.)