Mauritius FPIs highlighted in Hindenburg report push back against SEBI norms ahead of September 9 deadline: Report

One of these FPIs reportedly had 97.9% of its India assets in Adani Group companies.

Two foreign investor portfolios based out of Mauritius who were named in the Hindenburg Research report on the Adani Group in January 2023 have reportedly sent a petition to the Securities Appellate Tribunal (SAT) in which they have sought relief from complying with the new foreign investor norms unveiled by the Securities and Exchange Board of India (SEBI).

Both entities, as per a Moneycontrol report, filed the case and paid fees for the same on August 19.

Both funds have alleged that the directions that they have to comply with are not applicable to other FPIs, and thus are unfairly disadvantageous to their investors, the report said quoting people familiar with the matter.

The matter will be heard next week.

LTS Investment Funds and Lotus Global Investment have appealed to the SAT to direct SEBI to rule expeditiously on their exemption. They have also requested for protection from the SEBI order that says that firms which do not comply with their norms have to unwind their portfolios by September 9.

The two companies have asked the tribunal to order SEBI to give them time till March 2025 to meet the prescribed norms.

In the January 2023 report released by Hindenburg Research, the firm had alleged that these two FPIs, along with three others, were formed by the same entity and even used the same address. There were also a number of overlapping nominee directors in these five companies. The report had stated that 97.9 per cent of LTS' India assets were in Adani Group companies.

On the other hand, SEBI chairperson Madhabi Puri Buch is facing allegations of conflict of interest over the investigation into Hindenburg Research's claims against the Adani Group.

The Congress has questioned payments made to Buch by ICICI Bank, her former employer, after she became a whole-time member of SEBI, and sought an independent probe into the matter.

The PAC will hold its next meeting on September 10 when representatives of the Jal Shakti ministry will brief the panel on the 'Performance Audit on National Rural Drinking Water Programme (Jal Jeevan Mission)' based on a CAG report.