India is tightening transparency rules for “high risk” foreign investors, as part of the fallout from allegations of stock manipulation made by short seller Hindenburg against the Adani conglomerate this year.

The securities regulator Sebi is introducing a new disclosure regime on Wednesday for foreign investors with large stakes in single stocks or corporate groups. Sebi aims to curtail foreign funds’ ability to mask the extent of their ownership through complex company structures.

The regulator considers these concentrated investment vehicles “high risk” because of the chance that Indian company insiders could be controlling the funds through shell companies, and using them to influence stock prices or circumvent India’s 25 per cent minimum public float requirement.