SC refuses to order ‘full public disclosure’ of ultimate beneficiaries of AIFs, FPIs without ‘legal framework’
The court asks why an MP wants to file a public interest petition under Article 32 when she can raise the issue in the Parliament
The Supreme Court on Thursday declined to order the Securities and Exchange Board of India (SEBI) to require comprehensive public disclosure of the ultimate beneficial owners (UBO) behind Alternative Investment Funds (AIFs) and Foreign Portfolio Investors (FPIs) operating in the Indian securities market. The three-judge bench, led by Justice BV Nagarathna, clarified that a court-ordered public disclosure would require a pre-existing legal framework of regulations.
The court tasked the Union government and SEBI to develop such a framework, allowing for greater transparency. The petition, filed by Member of Parliament Mahua Moitra, highlighted the lack of disclosure norms compared to mutual funds, which are subject to strict SEBI regulations. The rapid growth of AIFs and FPIs, with asset under management (AUM) reaching nearly ₹13 lakh crore in 2025, raised concerns about potential market manipulation, money laundering, and tax evasion.
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