The Congress on Tuesday alleged {that a} rule prohibiting investment by opaque funds was done away with by SEBI on “weak grounds” and stated the market regulator can’t run with the hares by diluting reporting necessities and hunt with the hounds pretending to establish useful possession in opaque tax havens.
The Opposition get together’s assertion got here after a media report claimed that the Supreme Court-appointed committee scrutinised SEBI’s dropping of a key regulatory requirement for overseas portfolio investments (FPIs) months earlier than it developed suspicions on Adani group shareholding.
In an announcement, Congress common secretary in-charge communications Jairam Ramesh stated it’s now clear that, removed from a clear chit, the Supreme Court skilled committee on the “Modani mega scam” has unveiled how Securities and Exchange Board of India’s (SEBI) investigation of suspicious Adani transactions have been blocked or reached an deadlock, which is why the market regulator’s report deadline was prolonged to August 14.
The skilled committee had revealed that this was partly of SEBI’s personal making, after the regulator did away with the requirement on figuring out the last word useful proprietor of overseas funds and deleted provisions on “opaque structures”, Mr. Ramesh stated.
“This despite PM (Narendra) Modi’s frequent and evidently empty rhetoric against black money and offshore tax havens,” he added.
Posting his assertion, Mr. Ramesh tweeted, “Here is my statement on the latest revelation this morning on the Modani MegaScam which gets curiouser and curiouser by the day as new information trickles out.” “A report today in a leading economic daily now provides details as to how the rule prohibiting investment by opaque funds, i.e. Regulation 32(1)(f) of SEBI (FPI) Regulations, was done away with on weak grounds. Can SEBI explain the pressures placed on it to move in this unexpected direction?” he stated in his assertion.
“How is improving the ‘Ease of Living’ of those suspected of money-laundering and round-tripping consistent with promises of ‘na khaoonga, na khane doonga (will not indulge in corruption nor let others indulge in it)’,” he stated.
“It is therefore hardly surprising that SEBI has been unable to find the true beneficiaries of 42 companies based in offshore tax havens that have invested in Adani companies. It cannot run with the hares by diluting reporting requirements and hunt with the hounds pretending to identify beneficial ownership in opaque tax havens like the Cayman Islands, Malta, British Virgin Islands and Bermuda,” the Rajya Sabha member stated.
He claimed that opposite to the discovering of the skilled committee, this bears a powerful resemblance to regulatory failure.
“We earnestly hope that the August 14 SEBI report throws more light on the issue rather than covering it up,” Mr. Ramesh stated.
The Congress has been demanding a Joint Parliamentary Committee (JPC) probe into the allegations towards the Adani Group.
The Adani Group has dismissed the allegations as baseless.
