Supreme Court refuses to mandate public disclosure of investment fund owners

The Supreme Court refused Mahua Moitra's plea seeking mandatory disclosure of investment fund beneficiaries. The bench said such directions require an existing legal framework enforceable by courts.Image used for representational purposes onlyNewdelhi,Oct 29, 2026 13:34 ISTThe Supreme Court on Thursday refused to direct the Securities and Exchange Board of India (SEBI) to mandate public disclosure of the ultimate beneficial owners and portfolios of alternative investment funds (AIFs), foreign portfolio investors and their intermediaries in India, Press Trust of India reported.The court said it could not issue such an order in the absence of a legal framework requiring full public disclosure of ultimate beneficial owners. It disposed of a public interest litigation filed by Trinamool Congress MP Mahua Moitra.A bench of Justices BV Nagarathna, R Mahadevan and DK Upadhyaya initially questioned Moitra over the petition, saying she could have raised the issue in Parliament and sought a discussion.According to PTI, the bench observed: "Had there been any legal regime and the SEBI was not following it, the court can direct for compliance but in the absence of any framework or legal regime, the court cannot issue any mandamus." Advocate Prashant Bhushan, appearing for Moitra, argued that the court could direct SEBI to ensure full disclosure of the actual beneficiaries of these funds even without an existing framework. He said innocent investors were being "manipulated" by investors who boosted the shares of companies.In her petition, Moitra sought greater transparency and investor awareness in India's financial markets through mandatory public disclosure of details of the ultimate beneficial owners and portfolio holdings of AIFs and foreign portfolio investments. The petition said SEBI regulates India's securities markets and oversees the operations of AIFs and foreign portfolio investors. The court, however, concluded that it could not mandate the disclosures without an existing legal framework.- Ends