Supreme Court Questions Moitra's Petition on Investment Transparency

The Supreme Court scrutinized TMC MP Mahua Moitra's petition calling for public disclosure of investment fund ownership. Under Article 32, the court questioned the purpose of such disclosures. The court advised revising the plea to challenge SEBI's stance, emphasizing transparency in financial markets.

The Supreme Court has raised concerns over TMC MP Mahua Moitra's plea seeking mandatory public disclosure of ultimate beneficial owners and portfolios of alternative investment funds and foreign portfolio investors in India.

A bench comprising Justices B V Nagarathna and R Mahadevan questioned the legitimacy of filing a petition under Article 32 of the Constitution for such a purpose. The court asked the petitioner's counsel, advocate Prashant Bhushan, to revise the plea to directly challenge the Securities and Exchange Board of India's (SEBI) reply.

Highlighting transparency issues, Bhushan argued that over Rs 1 lakh crore is invested through complex structures that obscure ownership. He cited cases where shell companies used misleading fund names to hide true owners. The Solicitor General contended that this plea seeks disclosure for unwarranted scrutiny. The Supreme Court previously directed Moitra to make a representation to SEBI for further consideration.

(With inputs from agencies.)