Rule barring investment by opaque funds done away with by SEBI on ‘weak grounds’: Congress

The Congress on Tuesday as soon as once more took a swipe on the authorities, alleged {that a} rule prohibiting investment by opaque funds was done away with by the SEBI on “weak grounds” and stated the market regulator can not run with the hares by diluting reporting necessities and hunt with the hounds pretending to determine helpful possession in opaque tax havens.

In an announcement shared on Twitter, Congress General Secretary in-charge communications Jairam Ramesh stated: “Here is my assertion on the newest revelation this morning on the Modani MegaScam which will get curiouser and curiouser by the day as new data trickles out”.

He stated that it’s now clear that, removed from a clear chit, the Supreme Court professional committee on the “Modani mega scama 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”.

“A report in the present day in a number one financial every day now gives particulars 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 clarify the pressures positioned on it to maneuver on this surprising path?” he requested.

“How is enhancing the ‘Ease of Living’ of these suspected of money-laundering and round-tripping constant with guarantees of ‘na khaoonga, na khane doonga (won’t take pleasure in corruption nor let others take pleasure in it)’,” he requested.”

“It is due to this fact hardly stunning that SEBI has been unable to seek out the true beneficiaries of 42 corporations primarily based in offshore tax havens which have invested in Adani corporations. It can not run with the hares by diluting reporting necessities and hunt with the hounds pretending to determine helpful possession in opaque tax havens just like the Cayman Islands, Malta, British Virgin Islands and Bermuda,” Ramesh stated.

He claimed that opposite to the discovering of the professional committee, this bears a powerful resemblance to regulatory failure.

“We earnestly hope that the 14th August SEBI report throws extra gentle on the difficulty quite than masking it up,” the Congress chief added.

His remarks got here after a media report claimed that the Supreme Court-appointed committee scrutinised SEBI’s dropping of a key regulatory requirement for international portfolio investments (FPIs) months earlier than it developed suspicions on Adani group shareholding.

(With inputs from IANS)