The Supreme Court on Thursday disposed of TMC MP Mahua Moitra’s plea seeking public disclosure of the ultimate beneficial owners and portfolio holdings of alternative investment funds (AIFs) and foreign portfolio investors (FPIs), saying it could not issue directions in the absence of a legal framework.
A bench of Justices BV Nagarathna, R Mahadevan and DK Upadhyaya said the court could direct the Securities and Exchange Board of India (SEBI) to ensure compliance if a legal regime existed, but could not issue a mandamus without one.
The bench initially questioned Moitra’s decision to approach the court, observing that she could have raised the issue in Parliament and sought a discussion.
Advocate Prashant Bhushan, appearing for Moitra, argued that the court could direct SEBI to ensure full disclosure of the actual beneficiaries of these funds even in the absence of a regulatory framework. He contended that innocent investors were being “manipulated” by entities that artificially drove up share prices.
In her public interest litigation (PIL), Moitra sought greater transparency and investor awareness in the financial markets by mandating disclosure of the ultimate beneficial owners and portfolio holdings of AIFs and FPIs.
The plea noted that SEBI regulates India's securities markets and oversees the operations of AIFs and FPIs as part of its mandate.
(With inputs from PTI)
