Mauritius FPIs Challenged Over SEBI Norms, Jairam Ramesh Demands Investigation (

Since Mauritius-based FPIs named in Hindenburg’s Adani report seeking urgent Securities Appellate Tribunal (SAT) relief from SEBII’s new norms ahead of the September 9 deadline, Congress general secretary Jairam Ramesh flagged that both FPIs are alleged to be violating rules that require investors to not be over-invested in a single stock.

“These rules are meant to ensure that black money routed through tax havens does not flood back into Indian capital markets. They must be upheld at all costs,” he said. He added that these are the same FPIs accused of participating in the Adani Group’s attempt to bypass SEBI regulations and amass benami stakes in its companies” he wrote on X.

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Jairam Ramesh criticised SEBI for its removal of the requirement to identify the ultimate beneficial owner of offshore funds which is a decision that was later reversed in June 2023. He stated that this decision was a tacit admission of SEBI’s guilt and that these are the same firms that benefited from this removal.

Two Mauritius-based foreign portfolio investors (FPIs), a part of the revelations in the still-unfolding Modani mega scam, have now petitioned the Securities Appellate Tribunal, seeking urgent relief from complying with SEBI’s new foreign investor norms before the upcoming…

— Jairam Ramesh (@Jairam_Ramesh) September 8, 2024

He reiterated the need for a SEBI investigation into these violations which was supposed to be completed in two months but is still languishing 18 months later. SEBI has a lot to explain, apart from the multiple conflicts of interest of its chairperson that are now been revealed by Hindenburg, he added.

According to the reports, the Financial Services Commission (FSC) of Mauritius clarified that the offshore fund at the heart of the conflict of interest allegation is not domiciled in Mauritius and does not permit the creation of shell companies.

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