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SAT Disposes FPI Appeals After SEBI Agrees to Share Hindenburg Report File Noting
M
Moneycontrol•28-09-2026, 15:10
SAT Disposes FPI Appeals After SEBI Agrees to Share Hindenburg Report File Noting
- •The Securities Appellate Tribunal (SAT) disposed of appeals from five FPIs named in the Hindenburg Report after SEBI agreed to provide a true copy of the file noting made by its adjudicating officer.
- •The five FPIs involved are Albula Investment Fund, Asia Investment Corporation (Mauritius), LTS Investment Fund, Cresta Fund, and APMS Investment Fund.
- •The dispute centered on Rule 4(3) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995, which requires an adjudicating officer to form an opinion on whether an inquiry should be held.
- •SEBI's counsel agreed to provide the true copy of the file noting without prejudice to its rights and contentions, satisfying the FPIs' counsel.
- •Today's proceedings were limited to the disclosure of the Rule 4(3) opinion and file noting, with no ruling on the underlying allegations involving the FPIs or their conduct related to Adani Group companies.
Key Questions Answered
The Securities Appellate Tribunal disposed of the appeals after the Securities and Exchange Board of India agreed to provide the five foreign portfolio investors with a true copy of the file noting made under Rule 4(3) of the SEBI Adjudication Rules, satisfying the appellants.
The five foreign portfolio investors involved in the proceedings are Albula Investment Fund, Asia Investment Corporation (Mauritius), LTS Investment Fund, Cresta Fund, and APMS Investment Fund.
Rule 4(3) requires the adjudicating officer to consider a noticee's response to a show-cause notice and form an opinion on whether an inquiry should be held, which became the core document dispute between the funds and SEBI.
