New Delhi, Oct 9 (UNI) The Supreme Court today heard a petition filed by Trinamool Congress MP Mahua Moitra seeking directions to the Securities and Exchange Board of India (SEBI) to mandate public disclosure of Ultimate Beneficial Owners (UBOs), last natural persons, and portfolios of Alternative Investment Funds (AIFs), Foreign Portfolio Investors (FPIs), and their intermediaries operating in India.
Appearing for Moitra, Advocate Prashant Bhushan argued that SEBI’s reliance on the Prevention of Money Laundering Act (PMLA) regulations was inadequate, as the PMLA does not require public disclosure. “We are not on the reply since it does not answer this at all,” he submitted.
A Bench of Justice B.V. Nagarathna and Justice R. Mahadevan noted that the petitioner could place SEBI’s reply on record and clarified that no notice has been issued in the matter yet.
Counsel appearing for SEBI informed the Bench that Solicitor General Tushar Mehta would represent the regulator and that the issue had already been adjudicated earlier.
The Court adjourned the matter to October 14, allowing the petitioner to file additional documents submitted by SEBI.
Earlier, on September 26, the Court had noted that Moitra’s previous petition on a similar issue was disposed of in April, with directions to first approach SEBI with her grievances.
During that hearing, Advocate Bhushan submitted that Moitra had already made a representation to SEBI, but the regulator responded only after the current petition was filed. Justice Nagarathna observed, “So we will dispose of this petition with legal remedies open.”
SEBI’s counsel argued that the petition could not proceed without amendments, citing that a detailed reply had already been furnished to all queries.
Bhushan countered that no amendment was required as the prayer remained unchanged. The Bench then adjourned the matter, granting Moitra time to file an affidavit, while keeping legal remedies open for future consideration.
Moitra’s petition highlights that while Mutual Funds are governed by stringent public disclosure norms under the SEBI Mutual Fund Regulations, 1996, and Collective Investment Scheme Regulations, 1999, AIFs and FPIs operate under relatively opaque structures.
She contended that the lack of transparency around UBOs and monthly portfolio holdings poses serious threats to financial stability, investor protection, and economic sovereignty.
The MP warned that without greater transparency, India’s markets remain exposed to risks such as round-tripping, front-running, circular trading, greenwashing, tax evasion, and market manipulation.
