The Congress has raised concerns about the Securities and Exchange Board of India’s (SEBI) delayed investigation into what it describes as the “Adani Group’s brazen attempt” to bypass financial regulations.

Congress general secretary in charge of communications Jairam Ramesh on Sunday stated that SEBI has “a lot to explain” regarding its handling of the case.

The remarks follow a media report that two Mauritius-based foreign portfolio investors (FPIs), named in a January 2023 report by Hindenburg Research on the Adani Group, have approached the Securities Appellate Tribunal. They are seeking urgent relief from SEBI’s new foreign investor regulations ahead of the September 9 deadline. These FPIs are alleged to have violated rules that prevent over-investment in a single stock, aimed at curbing black money inflows through tax havens.

Ramesh accused the FPIs of being complicit in the Adani Group’s attempt to amass *benami* stakes in its companies by sidestepping SEBI regulations. He further criticized SEBI’s earlier removal of the requirement to identify the “ultimate beneficial owner” of offshore funds, a decision that was reversed in June 2023 due to public pressure.

He underscored the prolonged timeline of SEBI’s investigation, which was initially set to conclude within two months but remains incomplete 18 months later. “SEBI has a lot to explain, quite apart from the multiple conflicts of interest of its Chairperson that are now unravelling,” he added.

Also Read

Ramesh’s comments come in the wake of fresh allegations by Hindenburg Research against SEBI Chairperson Madhabi Buch, accusing her and her husband of having stakes in offshore funds involved in the Adani scandal. Both Buch and her husband have refuted these claims as baseless.

The Congress party has repeatedly accused the government of offering undue favours to the Adani Group, alleging financial irregularities and share-price manipulation in the conglomerate led by industrialist Gautam Adani. The Adani Group has consistently denied these charges, asserting its compliance with all legal and disclosure obligations.

(With inputs from PTI)