Neutral impactEconomy
SC refuses to order ‘full public disclosure’ of ultimate beneficiaries of AIFs, FPIs without ‘legal framework’
BusinessLine 1 hr ago·29 Oct 2026, 5:02 pm
The Supreme Court has declined to order a blanket public disclosure of the ultimate beneficial owners of Alternative Investment Funds (AIFs) and Foreign Portfolio Investors (FPIs). The bench ruled that the government lacks a specific legal framework to mandate such disclosures, stating that the court cannot create new laws or regulations.
This decision means that the identities of the individuals behind these large investment vehicles will remain private. For investors, this maintains the current system where these funds operate with a degree of secrecy, which is crucial for attracting foreign capital and managing risk without public scrutiny.
Investors should watch for the government’s next steps. The ruling highlights a gap in the legal framework, so the government may eventually introduce new rules to address transparency concerns. Until then, the status quo regarding AIF and FPI ownership will remain unchanged.
Excerpt from BusinessLine
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 refused to direct the Securities and Exchange Board of India (SEBI) to mandate full public disclosure of the details of ultimate beneficial owners (UBO) who…Read the original at BusinessLine
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- Category: Economy.
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