A day after SEBI proposed mandating additional disclosure for high-risk Foreign Portfolio Investors, the Congress, on Thursday, alleged that the regulator was now looking to tighten the very rules it was "forced to dilute" in 2018 to benefit the Adani Group.

The capital markets regulator, on Wednesday, came out with a proposal mandating enhanced disclosures from high-risk Foreign Portfolio Investors (FPIs) to guard against possible circumvention of the Minimum Public Shareholding (MPS) requirement.

This came after SEBI observed that some FPIs have concentrated a substantial portion of their equity portfolio in a single investee company. In some cases, these concentrated holdings have also been near static and maintained for a long time.

In a tweet, Congress general secretary Jairam Ramesh said, "The SEBI Consultation Paper put out yesterday proposes to tighten the very rules it was forced to dilute in 2018 to allow foreign portfolio investors to invest in Indian companies without having to reveal their FULL ownership details. This was done to benefit Modani." "We hope the Consultation paper is not an eyewash exercise and will cover investments made earlier," he said.

Also read: Report of SC-constituted panel on Adani-Hindenburg row

Ramesh claimed this seems to be a response to the findings of the Supreme Court Expert Committee. "It also vindicates the Hum Adanike Hain Kaun-HAHK series of 100 questions that we asked of the PM — which he remains totally silent on," the Congress leader said.

On Wednesday, SEBI said, "Such concentrated investments raise concern and possibility that promoters of such corporate groups, or other investors acting in concert, could be using the FPI route for circumventing regulatory requirements such as that of maintaining Minimum Public Shareholding " 

In its consultation paper, the regulator has proposed obtaining granular information from high-risk FPIs that have concentrated equity holdings in single companies or business groups.

The Congress has been seeking a joint parliamentary committee probe into the Adani matter after Hindenburg Research in its January 24 report levelled allegations of fraud, stock manipulation, and money laundering against the Adani group.

While the group has denied all allegations, the Supreme Court constituted an expert committee for assessment of the extant regulatory framework and asked SEBI to complete its probe into allegations.