sebi:SO/2024-25/EFD-2/10-16
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Facts / Headnote
Settlement of enforcement proceedings; SEBI shall not initiate enforcement action against the Applicants for the said violations
Provisions invoked
- s. 19
- s. 15J
Regulations
- Reg. 25
- Reg. 28
- Reg. 23
- Reg. 16
Parties
- AIF
- Key Managerial Personnel
- Trustee
Holding
SEBI settled the enforcement proceedings against the AIF, its Key Managerial Personnel, and the Trustee for breach of the concentration limit under the AIF Regulations, on payment of ₹11,25,000/-. SEBI agreed not to initiate enforcement action for the said violations, subject to the reservations under Regulation 28.
Full text
2 and 3(b) of the Code of Conduct as mentioned in the Fourth Schedule of the AIF Regulations and Clause 13.2.2(ii) and 15.2.4 of the Master Circular dated July 31, 2023.
3 of Regulations 23 of the Settlement Regulations, the specified proceedings, in respect of which the Notice was issued, are hereby settled in respect of the Applicants on the following terms: i. SEBI shall not initiate any enforcement action against the Applicants for the said violations, and ii. passing of this Settlement Order is without prejudice to the right of SEBI under Regulation 28 of the Settlement Regulations to initiate appropriate action against the Applicants, if SEBI finds that: (a) any representation made by the Applicants in the present settlement proceedings is subsequently found to be untrue; (b) the Applicants have breached any of the clauses/ conditions of undertakings/ waivers filed during the present settlement proceedings; and (c) there is a discrepancy while arriving at the settlement terms.
2. In terms of Regulation 16 of the SEBI (Settlement Proceedings) Regulations, 2018 (hereinafter referred to as “Settlement Regulations”), SEBI issued a ‘Notice of Summary Settlement’ dated May 02, 2024 (hereinafter referred to as the “Notice”) to the AIF, the Key Managerial Personnel and the Trustee (hereinafter collectively referred to as the “Applicants”) intimating them that the relevant provisions of the AIF Regulations, as mentioned in paragraph 1, had been violated on account of the breach of the concentration limit and that, if the Applicants so desired, the enforcement proceedings to be initiated for the same may be settled and disposed of upon filing of an application under the Settlement Regulations along with remittance of the settlement amount of ₹11,25,000/- (Rupees Eleven Lakhs Twenty Five Thousand only) to be paid jointly and severally within 30 calendar days from the date of receipt of the Notice in terms of Chapter VII of the Settlement Regulations.
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Source: SecMarx — sebi:SO/2024-25/EFD-2/10-16. 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.