- Several foreign funds investing in the Gautam Adani-led Adani Group have come under the scanner.
- These funds have refused to identify their beneficial owners on grounds of client confidentiality and foreign privacy laws.
- SEBI has sought ownership information from these foreign funds vested in the Adani Group.
- SEBI asked for six more months from the Supreme Court to complete its investigation into the Adani Group.
- The Congress said it hopes SEBI will use all means at its disposal to get clarity about the ultimate beneficial ownership of foreign funds invested in the Adani group.
Several foreign funds investing in the Gautam Adani-led Adani Group have come under the scanner. As per the latest report, these funds have refused to identify their beneficial owners on grounds of client confidentiality and foreign privacy laws.
According to news broadcasters, market regulator the Securities and Exchange Board of India (SEBI) has now sought ownership information from these foreign funds vested in the Adani Group. SEBI asked for six more months from the Supreme Court to complete its investigation into the Adani Group after the Hindenburg Research report alleged fraud.
The report adds that one of the foreign funds claims that its beneficiaries are in Switzerland and there, it is a criminal offense to collect evidence from the country to help a foreign investigation. Even others reportedly said that their home country regulators could sue them under the General Data Protection Regulation (GDPR). The said act restricts data sharing.
However, in order to fetch maximum information on the ownership structure, SEBI may reportedly have to go through several countries. Since many of these funds have complex structures, the route, and investigation also reportedly get difficult.
The Congress said it hopes SEBI will use all means at its disposal to get clarity about the ultimate beneficial ownership of foreign funds invested in the Adani group. The party also asserted that public interest must not be undermined using the excuse of confidentiality and privacy.
Tagging the report, the Congress’ general secretary in charge of communications Jairam Ramesh said on Twitter, “We hope SEBI will use all the means at its disposal to get clarity about ultimate beneficial ownership of these funds given the serious and credible allegations of money-laundering, round-tripping, and violations of securities laws against the Adani Group.”
(With inputs from agencies)
