SEBI seeks beneficial ownership details of foreign investors

India's markets regulator has written to various custodian banks asking for details on beneficial owners of offshore funds and foreign portfolio investors (FPIs), two sources directly aware of the matter said on Monday.

While not unprecedented, the move comes after a scathing attack by U.S. short-seller Hindenburg Research on the Adani Group, alleging improper use of offshore tax havens and stock manipulation.The conglomerate denies all allegations.

However, the report lead to a market rout where seven Adani group companies lost more than $100 billion since Jan. 24.

Foreign investors offloaded Indian equities worth 288.52 billion rupees ($3.51 billion) in January, data showed.

The Securities and Exchange Board of India (SEBI) last week asked custodian banks - typically foreign banks that manage flows from FPIs- to reach out to these investors by March and share the details of their findings by end of September, the sources said, speaking on condition of anonymity as the matter is confidential.

SEBI did not immediately respond to Reuters emails for comment.