sebi:Order/SM/BK/2025-26/32022
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Facts / Headnote
Violation established; monetary penalty imposed under Section 15HB of the SEBI Act, 1992 read with Regulation 43 of SEBI (FPI) Regulations, 2019
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 20(5)
- Reg. 43
Parties
- Pragnya Fund II
Holding
The Noticee (Pragnya Fund II) violated Regulation 20(5) of SEBI (FPI) Regulations, 2019 and Clause 9 of Part C of the Master Circular read with RBI Circular RBI/2017-18/199 dated June 15, 2018 by holding short-term corporate debt investments exceeding the 30% limit during the examination period, and is liable for monetary penalty under Section 15HB of the SEBI Act, 1992 read with Regulation 43 of SEBI (FPI) Regulations, 2019.
Full text
Adjudication Order in the matter of Pragnya Fund II |Page 2 of 24 Circular RBI/2017-18/199 dated June 15, 2018. In view thereof, SEBI initiated Adjudication Proceedings in respect of the Noticee under Section 15 I of the Securities and Exchange Board of India Act, 1992 (‘SEBI Act, 1992’, in short), for the violations, as stated. B. APPOINTMENT OF ADJUDICATING OFFICER Whereas, the Competent Authority was prima facie of the view that there were sufficient grounds to adjudicate upon the alleged violation by the Noticee, as stated above and therefore, in exercise of the powers conferred under Section 15-I of the SEBI Act, 1992 and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 read with Section 19 of the SEBI Act, 1992, the Competent Authority appointed Shri Amar Navlani, General Manager, SEBI as the Adjudicating Officer (erstwhile AO) vide communique dated March 06, 2025 to inquire into and adjudge under Section 15HB of the SEBI Act, 1992 read with regulation 43 of SEBI (FPI) Regulations, 2019 for the alleged violation by the Noticee. Subsequent to the transfer of erstwhile AO, vide communique dated September 19, 2025, the undersigned has been appointed as the Adjudicating Officer.
Adjudication Order in the matter of Pragnya Fund II |Page 3 of 24 The key allegations in respect of the Noticee inter alia brought out in the SCN are as under:
Adjudication Order in the matter of Pragnya Fund II |Page 4 of 24 Table 3: Summary of Investments in Corporate Bonds by the FPI – Pragnya
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Source: SecMarx — sebi:Order/SM/BK/2025-26/32022. 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.