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Supreme Court Rejects Mahua Moitra’s UBO Disclosure Petition

By Drooid · Oct 30, 2026 · How we work

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Summary

The Supreme Court dismissed MP Mahua Moitra’s petition for public UBO disclosure of AIFs and FPIs.
Justices B.V. Nagarathna, R. Mahadevan and D.K. Upadhyaya said no legal framework exists.
Solicitor General Tushar Mehta warned the order could damage the national economy.
Advocate Prashant Bhushan argued opaque AIF and FPI structures enable market manipulation.
FPI assets under custody hit INR74 lakh crore in 2025, exceeding mutual-fund AUM of INR68 lakh crore.

Summary

SEBI will set direct mutual fund plans as default on AMC digital platforms from November 1.
SEBI Chairman Tuhin Kanta Pandey said investors choosing regular plans must receive clear disclosure of higher expense ratios.
SEBI’s AI-driven Radar tool will expand from monitoring mutual-fund ads to all market intermediaries.
In-house AI system Sudarshan flagged over 40% of 2.2 lakh misleading content for takedown.
Project Jagruk, launched October 5, generated more than 25 crore impressions and 18 crore social-media views.

History

The 1992 Harshad Mehta fraud exposed fake bank receipts and prompted the RBI and SEBI to tighten securities oversight. A similar manipulation by broker Ketan Parekh culminated in the 1 March 2001 crash, when the BSE Sensex fell 176 points and the K-10 stocks collapsed. Those events drove SEBI to tighten fund-disclosure rules.

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The 1992 Harshad Mehta fraud exposed fake bank receipts and prompted the RBI and SEBI to tighten securities oversight. A similar manipulation by broker Ketan Parekh culminated in the 1 March 2001 crash, when the BSE Sensex fell 176 points and the K-10 stocks collapsed. Those events drove SEBI to tighten fund-disclosure rules.

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