sebi:SO/AS/EFD2/2024-25/1-4

SEBI · SEBI · 2024-03-04 · Whole Time Member (Kamlesh C. Varshney and Amarjeet Singh)

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Facts / Headnote

Settlement of enforcement proceedings; SEBI shall not initiate enforcement action against the Applicants for the specified violations.

Provisions invoked

• s. 19
• s. 15J
• s. 15E

Regulations

• Reg. 25
• Reg. 28
• Reg. 23
• Reg. 20(1)
• Reg. 20(5)
• Reg. 16
• Reg. 16(3)(b)

Parties

• AIF
• Manager
• Key Managerial Personnel (Applicant Nos. 3 and 4)

Holding

SEBI settled the enforcement proceedings that may have been initiated against the AIF, its Manager, and Key Managerial Personnel for violations of the AIF Regulations and Code of Conduct, on terms including payment of ₹11,25,000/-.

Full text

2 Fourth Schedule of the AIF Regulations, Regulation 20(5) of the AIF Regulations. Similarly, the Key Managerial Personnels of the AIF, i.e. Applicant Nos. 3 and 4 are in violation of Regulation 20(1) read with clause 2(a) and 2(c) of Code of Conduct as specified in the Fourth Schedule of the AIF Regulations, 2012.

3 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.

3. 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 March 04, 2024 (hereinafter referred to as the “Notice”) to the AIF, its Manager and the Key Managerial Personnels (hereinafter collectively referred to as the “Applicants”) intimating that proceedings under Section 15EA of the SEBI Act may be initiated, for the aforesaid violations and that in case the applicants wished to settle the aforesaid proceedings to be initiated they would be required to file an application under the Settlement Regulations along with remittance of the settlement amount of ₹11,25,000/- (Rupees Eleven lakhs twenty five thousand only) in terms of Regulations 16(3)(b) of the SEBI (Settlement Proceedings) Regulations, 2018 within 30 calendar days from the date of receipt of the Notice in terms of Chapter VII of the Settlement Regulations.

Source: SecMarx — sebi:SO/AS/EFD2/2024-25/1-4. 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.