The Supreme Court on Tuesday disposed of a Public Interest Litigation (PIL) filed by TMC MP Mahua Moitra, raising concerns over the Securities and Exchange Board of India’s (SEBI) lack of regulation regarding two key investment categories—Alternative Investment Funds (AIF) and Foreign Portfolio Investments (FIP).
A bench led by Justice BV Nagarathna directed Moitra to make a formal representation to SEBI instead. The court noted that the petitioner could present her grievances in detail to SEBI, which would consider the matter in accordance with the law.
Advocate Prashant Bhushan, who represented Moitra, informed the court that AIF and FIP collectively hold 25 percent of the stakes in the stock market, valued at approximately ₹90 lakh crores.
Bhushan argued that SEBI must regulate these investments and introduce a disclosure rule to determine who is investing.
Currently, SEBI’s regulatory regime requires disclosures only from investors whose assets exceed fifty thousand crores. Bhushan pointed out that this non-disclosure policy was leading to various issues, including lack of transparency.
When asked whether Moitra had made a representation to SEBI, Bhushan replied that SEBI had justified its position by citing concerns about privacy violations if such disclosures were mandated.
Justice Nagarathna emphasized that Moitra had not yet provided SEBI with the opportunity to consider her concerns. The court ultimately disposed of the plea, directing Moitra to take her grievances directly to SEBI.
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