Congress Calls for Action on SEBI's Adani Probe

The Congress criticized SEBI for delays in their investigation into the Adani Group's alleged regulatory breaches. Two Mauritius-based foreign portfolio investors have sought relief from SEBI's new norms. The Congress claims these FPIs are part of a broader scheme to bypass regulations, causing potential financial malpractice via offshore funds.

The Congress on Sunday leveled strong criticism at SEBI for delaying its investigation into the Adani Group's alleged flouting of regulatory norms. The capital markets regulator, they said, has much to explain.

Congress general secretary in-charge of communications Jairam Ramesh's comments followed a media report indicating that two Mauritius-based foreign portfolio investors (FPIs) implicated in a January 2023 Hindenburg Research report about the Adani Group, had petitioned the Securities Appellate Tribunal. They are seeking immediate relief from having to comply with SEBI's new foreign investor regulations by September 9.

'Two Mauritius-based FPIs, entangled in the ongoing Modani mega scam, have petitioned for urgent relief concerning SEBI's new norms before the approaching deadline,' Ramesh explained. Both entities are accused of breaking rules to prevent over-investment in a single stock, measures designed to keep black money from tax havens out of Indian markets, he said.

'These same FPIs participated in the Adani Group's brazen attempts to dodge SEBI regulations to amass benami stakes,' Ramesh added, accusing SEBI of initially removing, then reinstating under public pressure, the "ultimate beneficial owner" requirement for offshore funds in June 2023, indicating SEBI's tacit admission of lapses.

The SEBI probe, mandated to complete in two months and report to the Supreme Court, is still pending after 18 months, with new conflicts tied to SEBI Chairperson unraveling, Ramesh noted.

Ramesh's remarks came weeks after Hindenburg Research accused SEBI Chairperson Madhabi Buch and her husband of having stakes in dubious offshore funds linked to the Adani money siphoning scheme, allegations they deny.

Adani Group had labeled Hindenburg's claims baseless and manipulative, stating it has no commercial ties with the SEBI Chairperson or her husband.

Congress continues to accuse the Adani Group of financial irregularities, alleging government favoritism to boost the conglomerate's profits. The opposition's attacks intensified after Adani Group's stocks fell following Hindenburg's various allegations, which Adani dismisses as false.

(With inputs from agencies.)