TMC MP Mahua Moitra moves Supreme Court seeking SEBI disclosure of Ultimate Beneficial Owners and portfolios of FPIs and AIFs to prevent market risks. Court allows her to file affidavit and keeps legal remedies open.
New Delhi: The Supreme Court on Friday heard a new petition filed by Trinamool Congress (TMC) Member of Parliament Mahua Moitra.
She had approached the Court once again seeking directions to the Securities and Exchange Board of India (SEBI) to make it compulsory for Alternative Investment Funds (AIFs), Foreign Portfolio Investors (FPIs), and their intermediaries in India to publicly disclose details of their Ultimate Beneficial Owners (UBOs), last natural persons, and their portfolios.
The case was listed before a Bench of Justice BV Nagarathna and Justice R. Mahadevan. The judges recalled that in April 2025, the Court had already disposed of Moitra’s earlier petition with a similar demand, asking her to first make a formal representation to SEBI.
During the hearing, Advocate Prashant Bhushan, appearing for Moitra, told the Court that a representation had already been made to SEBI. He pointed out that SEBI responded only after the present petition was filed.
Justice Nagarathna then observed,
“So we will dispose of this petition with legal remedies open.”
Bhushan clarified that he would consider SEBI’s reply as a response to the current petition and said he would be filing a short affidavit to move ahead in the matter.
SEBI’s lawyer, however, argued that the petition could not continue without being amended, since the regulator had already given a detailed reply to the queries raised.
Bhushan disagreed, stating that amendments were not necessary because his original prayer for transparency in investor disclosures remained the same.
At this stage, the Bench adjourned the case to allow Moitra to place her affidavit on record. The Court said that all legal remedies would remain open for her to pursue in future.
It may be recalled that back in April, the Supreme Court had directed Mahua Moitra to make a representation before SEBI, instead of pursuing her petition directly in court. The Court had made it clear then that once such a representation was made, SEBI must deal with it according to law.
In her petition, Moitra raised concerns about the rising role of Alternative Investment Funds and Foreign Portfolio Investors in India’s financial markets.
She stressed that, unlike Mutual Funds, which are bound by strict disclosure norms under the SEBI Mutual Fund Regulations, 1996, and the SEBI Collective Investment Scheme Regulations, 1999, AIFs and FPIs are largely exempt from similar transparency requirements.
She argued that this lack of disclosure created serious risks. According to her, the “lack of public disclosure by AIFs, FPIs, and their intermediaries on two critical fronts, Ultimate Beneficial Owners (UBOs) and monthly portfolio holdings; poses serious threats to financial stability and economic sovereignty.”
Moitra warned that without transparency on UBOs and portfolio holdings, India’s markets could become vulnerable to market manipulation and fraudulent practices.
She specifically highlighted risks such as round-tripping, front-running, circular trading, greenwashing, tax evasion, and money laundering.
Advocate Prashant Bhushan also pressed for the same concerns before the Bench on Friday, remarking,
“I’ll file a short affidavit. I’m aggrieved by the reply. The prayer is for transparency in foreign portfolio investors.”
The Court then passed an order noting that SEBI had already responded to the petitioner’s representation. It gave Moitra time to file the affidavit and adjourned the matter to 9 October 2025.
The brief exchange ended with the Court remarking,
“We had asked you to give a representation.”
To which Bhushan responded that they had indeed filed it and received SEBI’s reply on 23rd September. Justice Nagarathna then clarified,
“We’ll dispose of it with liberty to avail alternative remedy.”
Case Title:
Mahua Moitra v. Union of India and Anr, W.P.(C) No. 885/2025
Read Live Coverage:
Read Order:
Click Here to Read Previous Reports on Social Media
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE
