sebi:Order/GG/VV/2023-24/28720-28727
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Facts / Headnote
Adjudication proceedings initiated; Noticee No.2's cause abated (deceased); proceedings recommenced against Noticee Nos.1 and 4 to 9; violation of Regulation 21(1) of AIF Regulations found against Noticee No.1; allegations under Regulations 21, 22, 24(e) regarding failure to produce due diligence held not made out
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 28A
Regulations
- Reg. 11
- Reg. 15
- Reg. 11(1)
- Reg. 21
- Reg. 21(1)
- Reg. 199
- Reg. 15(1)(e)
- Reg. 2(1)(b)
- Reg. 2(1)
- Reg. 22
- Reg. 24
- Reg. 2(1)(c)
- Reg. 2(I)(b)
- Reg. 22(a)
- Reg. 22(e)
- Reg. 24(e)
- Reg. 57
- Reg. 22(b)
Parties
- Trinity Alternative Investment Managers Limited (Noticee No.1)
- Satish Chandra Jha (Noticee No.2 - cause abated)
- Shashi Bhushan Tiwari (Noticee No.4)
- Noticee No.5
- Noticee No.6
- Noticee No.7
- Noticee No.8
- Noticee No.9
Holding
The Adjudicating Officer held that Noticee No.1 (TAIML) violated Regulation 21(1) of the AIF Regulations, 2012 by failing to disclose the conflict of interest arising from the IRF's investment in AMR HCL (which indirectly benefited repayment of a loan owed to sponsor group company SREI EFPL) to its investors. However, the allegations that the Manager failed to produce and record complete due diligence before the Investment Committee, thereby violating Regulations 21, 22 and 24(e), were not made out as the Manager had provided all necessary information and documents to the IC.
Full text
In the matter of Trinity Alternative Investment Managers Limited. Page 2 of 42 A. BACKGROUND OF THE CASE 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) has initiated adjudication proceedings in the matter of Trinity Alternative Investment Managers Limited (hereinafter referred to as “TAIML” or “the Company” or “Target Company”) (formerly known as SREI Alternative Investment Trust “SREI AIT”) against the company and its 8 directors, under Section 15HB of the SEBI Act, 1992 (hereinafter referred to as “SEBI Act”), for the alleged violations of Regulations 2(1)(b), 21, 22, 24(e) and 11 of SEBI (Alternate Investment Funds) Regulations, 2012 (hereinafter referred to as “AIF Regulations, 2012”).
In the matter of Trinity Alternative Investment Managers Limited. Page 3 of 42 B. APPOINTMENT OF ADJUDICATING OFFICER 5. SEBI, in exercise of powers under section 15-I of SEBI Act, 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by AO) Rules, 1995 (hereinafter referred to as "SEBI Rules, 1995") read with Section 19 of the SEBI Act, 1992 appointed me as the Adjudicating Officer (AO) vide order dated December 10, 2021 to inquire into and adjudge under Section 15HB of the SEBI Act, 1992, the alleged violations of SEBI (AIF) Regulations, 2012 with respect to the Noticees, herein.
In the matter of Trinity Alternative Investment Managers Limited. Page 4 of 42 Table No. 2 : The 4 schemes of SREI AIF 9. The investors of the Infrastructure Resurrection Fund (IRF), are GMR Corporate Affairs Private Limited, SREI Alternative Investment Managers Limited, SREI Infrastructure Finance Limited, Nikshepa infrastructure and Logistics Limited, Elevate Portfolio Management Private Limited and SREI Capital Markets Limited.
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Source: SecMarx — sebi:Order/GG/VV/2023-24/28720-28727. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.