The Supreme Court on Thursday said it will hear on October 14 the plea filed by TMC MP Mahua Moitra, seeking mandatory public disclosure of ultimate beneficial owners and portfolio holdings of Alternative Investment Funds, Foreign Portfolio Investors, and their intermediaries in India.
The plea was listed before a bench of Justices B V Nagarathna and R Mahadevan.
SEBI Response & Representation
Advocate Prashant Bhushan, appearing for Moitra, informed the court that the petitioners had filed the reply received from the Securities and Exchange Board of India in response to a detailed representation submitted on the matter.
Previously, on April 1, directed Moitra to submit a comprehensive representation to SEBI regarding the issue. Bhushan said they had also filed their response to SEBI’s reply, received last month.
“The reply does not satisfy what we were asking for,” Bhushan said, adding that SEBI had referred to Prevention of Money Laundering Act (PMLA) regulations, which he argued do not address the concerns raised in the petition.
Court Directs Filing Of Amendments
The bench asked Bhushan to amend the writ petition to incorporate the documents submitted with the additional affidavit. Bhushan contended that amending the petition was not strictly necessary since the prayer in the plea remains the same, but agreed to include the documents formally through an appropriate application.
“You amend your writ petition,” the bench said.
The matter has been posted for hearing on October 14.
Timeline Of Proceedings
On September 26, Bhushan told the court that Moitra had submitted her representation on May 23, and SEBI’s reply, dated September 19, was received on September 23. He suggested the reply could be considered virtually as a response to the petition.
Earlier, on April 1, while disposing of Moitra’s initial plea, the apex court had observed that once such a representation was made, it must be considered in accordance with law, and if authorities failed to act within a reasonable time, the petitioner had legal remedies.
Focus On Transparency & Investor Awareness
Moitra’s PIL emphasizes the need for greater transparency and investor awareness in India’s financial markets by disclosing UBO details and portfolio holdings of AIFs and FPIs.
The plea notes that SEBI regulates the securities markets in India and oversees the operations of AIFs and FPIs as part of its mandate. The petition seeks to make this information publicly accessible to enhance accountability in the financial system.
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