sebi:WTM/AB/AFD-1/AFD-1-SEC/25881/2023-24
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Facts / Headnote
Violations of Regulations 20(1), 23(1)(a) and 24(2) of VCF Regulations found against the Fund; Noticee no. 1 (investment manager) and Noticee no. 9 (trustee) held liable; directions issued for winding up of the Scheme, NAV determination, in specie distribution, and association restraints on Noticees 2, 3, 4, 5, 6, 7, 8 and 9; no violation of Regulation 12(d)(ii)(e) found.
Provisions invoked
- s. 11B
- s. 24
- s. 19
- s. 27
- s. 27(1)
- s. 12(3)
- s. 60
- s. 27(2)
- s. 47
- s. 283(2)
Regulations
- Reg. 3
- Reg. 17
- Reg. 12
- Reg. 8
- Reg. 15
- Reg. 29
- Reg. 2
- Reg. 1
- Reg. 22
- Reg. 11(1)
- Reg. 23
- Reg. 2(1)(m)
- Reg. 30
- Reg. 16(1)
- Reg. 17(1)
- Reg. 20(1)
- Reg. 111
- Reg. 24(2)
- Reg. 23(1)(a)
- Reg. 23(3)
Holding
The Fund was found in violation of Regulations 20(1), 23(1)(a) and 24(2) of the VCF Regulations for non-winding up on expiry of tenure, failure to maintain books and records, and failure to submit quarterly reports; Noticee no. 1 (investment manager) and Noticee no. 9 (trustee) were held liable for these violations, while the alleged violation of Regulation 12(d)(ii)(e) regarding SPV investment limits was not made out.
Full text
Final Order in the matter of inspection of Vistaar Religare Media Fund Page 2 of 68 11B of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act, 1992”) read with Regulations 29, 30(a), 30(d) and 30(f) of VCF Regulations should not be issued against them.
Final Order in the matter of inspection of Vistaar Religare Media Fund Page 3 of 68 A. Non winding up on expiry of tenure of the Scheme of the Fund 2.4.1. As per the Private Placement Memorandum (PPM) issued by the Scheme of the Fund, the tenure of the Scheme was 5+1+1 years from its initial closing date. As submitted by the Fund, tenure of the Scheme expired on July 24, 2013 and no extensions were granted. No steps were taken for extension or winding up of the Scheme in accordance with the VCF Regulations and the investments were yet to be liquidated by the fund and repaid to investors.
Final Order in the matter of inspection of Vistaar Religare Media Fund Page 4 of 68 C. Non redressal of investor complaints & non submission of periodic reports as required by SEBI:
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Source: SecMarx — sebi:WTM/AB/AFD-1/AFD-1-SEC/25881/2023-24. 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.