September 8th 2024.
The Congress party has once again raised concerns about the ongoing SEBI investigation into the Adani Group's alleged attempts to bypass regulations. Congress general secretary Jairam Ramesh has criticized the capital markets regulator for its slow progress in addressing the issue.
Ramesh's remarks were prompted by a recent media report which revealed that two Mauritius-based foreign portfolio investors, who were mentioned in a report by short-seller Hindenburg Research, have petitioned the Securities Appellate Tribunal for urgent relief from complying with SEBI's new foreign investor norms. These FPIs are accused of violating rules that prevent over-investing in a single stock, which are in place to prevent the flow of black money into Indian markets.
"These are the very same FPIs who are also involved in the Adani Group's alleged attempts to bypass SEBI's regulations and acquire benami stakes in its own companies," Ramesh stated. He also pointed out that these FPIs had benefited from SEBI's decision to remove the requirement to identify the "ultimate beneficial owner" of offshore funds, a decision that was later reversed under public pressure.
Ramesh also highlighted the fact that the SEBI investigation into these violations, which was supposed to be completed within two months, is still ongoing after 18 months. He called for SEBI to be held accountable for its slow progress, as well as addressing the conflicts of interest of its Chairperson Madhabi Buch.
Recently, Hindenburg Research had made fresh allegations against Buch, claiming that she and her husband had stakes in offshore funds involved in the Adani money siphoning scandal. Buch and her husband have denied these allegations and stated that their finances are transparent.
The Adani Group has also refuted the allegations made by Hindenburg Research, stating that the claims are baseless and that they have no commercial relationship with Buch or her husband. However, the Congress party has been persistently attacking the government over the Adani Group's alleged financial irregularities and favors given by the government to the conglomerate.
The ongoing SEBI investigation and the allegations made by Hindenburg Research have caused a decline in Adani Group stocks. The group has maintained that they comply with all laws and disclosure requirements.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
