Adani probe: SC asks Sebi to explain changes in norms

The Securities and Exchange Board of India (Sebi) will have to explain the rationale behind the legislative changes relating to beneficial owners (BOS) and related-party transactions (RPTS), the Supreme Court said on Tuesday, citing the concerns raised by the Court-appointed expert committee to look into the Adani-Hindenburg episode.

- Utkarsh Anand

NEW DELHI: A bench, headed by Chief Justice of India Dhananjaya Y Chandrachud, took note of a submission that the expert committee has observed that Sebi investigation into the matter cannot yield any result since there have been changes in the law to do away with a prohibition on foreign portfolio investors (FPIs) against "opaque structures", and changes in the regulation pertaining to RPTS.

"Apropos this submission, Mr Solicitor General, you will have to explain what were the circumstances that led to the change in definition of beneficial owners....you may have to go into the background of amendment... why was the amendment passed," the bench, which also included justice PS Narasimha, told S-G Tushar Mehta.