Though the Securities and Exchange Board of India (Sebi) has approached the Mauritius Offshore Business Activities Authority (MOBAA) for getting details on Mauritius-based overseas corporate bodies (OCBs)/foreign institutional investors (FIIs) investments, the Reserve Bank of India (RBI) has neither made any request for investigation to the Central Bank of Mauritius nor has contacted organisations such as the Organisation of Economic Corporation and Development in this matter.
The OCBs in question are Brentfield Holdings Ltd, Wakefield Hodings Ltd, Kesington Investments, European Investments Ltd, Far-East Investment Corporation Ltd, Delgrada Ltd, Almel Investments (Mauritius) Ltd, Symphony Holdings, Greenfield Investments Ltd and AOM Investments Ltd and Dossier Stock Inc.
These OCBs are being looked into for having executed large transactions in stocks linked to Ketan Parekh.
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According to RBI, its jurisdiction is restricted to banks/financial institutions operating in India and only in case of necessity the central banks of various countries exchange/seek information from each other.
Moreover, it is left to a foreign bank to decide whether it will provide the required information.
The RBI's inaction over seeking details of alleged routing of investments through OCBs/FIIs assumes significance since the Union finance ministry is learned to have asked the Sebi to stay away from investigating the matter.
Since Sebi does not have a formal agreement for sharing information with the Central Bank of Mauritius, it cannot seek information from such banks.
Sebi has sought information from MOBAA in respect of actual beneficiaries, source and utilisation of funds by OCBs and FII sub-accounts mentioned in its preliminary investigation report. MOBAA is expected to furnish the details shortly.
Sebi is a member of the International Organisation of Securities Commission and normally the securities regulators of various countries co-operate with each other towards exchanging information relating to securities market participants.