SEBI’s inability to reach conclusion is ‘deeply worrying’, says Congress

New Delhi: The Congress on Saturday said stock market regulator SEBI’s inability to reach a conclusive finding on the allegations of round-tripping and money laundering by the Adani Group was “deeply worrying”.

Congress general secretary Jairam Ramesh said the Securities and Exchange Board of India (SEBI) has admitted this in its status report to the Supreme Court and added only a Joint Parliamentary Committee (JPC) can examine how the government flouted norms and procedures to help Prime Minister Narendra Modi’s “favourite business group.”

“The inability of the Securities and Exchange Board of India (SEBI) to reach a conclusive finding on allegations of round-tripping and money laundering by the Adani Group, as it has admitted in its 25th August 2023 status report to the Supreme Court, is deeply troubling,” Ramesh said in a statement. Sharing the statement on ‘X’, he posted, “SEBI’s inability to reach a final conclusion in the matter of round-tripping and money-laundering allegations against the Adani Group is deeply worrying.”

The Congress leader said that of the 24 matters SEBI investigated relating to the matter, two still have interim status.

Ramesh said one of the interim reports relates to the important question of whether Adani violated the Minimum Public Shareholding requirement under Rule 19A of the Securities Contracts (Regulation) Rules. “In simple terms, did Adani use opaque entities based in overseas tax havens to engage in the kind of round-tripping and money laundering that the PM has always claimed to oppose? SEBI has stated that the reason for delay is that information from external agencies and entities is still awaited,” he added.

The country, Ramesh said, is clearly paying a heavy price for the SEBI’s decision in 2018 to dilute and in 2019 to delete the reporting requirements relating to the ultimate beneficial ownership of foreign funds.

The Congress leader noted no less than the Supreme Court’s Expert Committee pointed out that the reason the SEBI has failed to identify beneficial ownership of overseas investors in Adani companies was that “the securities market regulator suspects wrongdoing” but is “drawing a blank worldwide” due to its “piquant” decision to remove these stipulations.