New Delhi, Dec 25 (PTI) Three entities have settled with capital market regulator Sebi a case pertaining to the alleged violation of AlF norms and other regulatory rules after paying Rs 28.5 lakh towards the settlement charges.
The settlement fee was paid by the applicants (Utthishta Virat Fund, Utthishta Management Advisors LLP, and P Rama Krishna) jointly and severally.
The order came after the applicants proposed to settle the enforcement proceedings that may be initiated against them for the violation of the provisions of the Alternate Investment Fund (AIF) regulations.
"In exercise of the powers...and in terms of the settlement regulations, in respect of which the notice was issued, are hereby settled in respect of the applicants," Sebi's whole time members Amarjeet Singh and Kamlesh C Varshney said in the order on December 20.
The Securities and Exchange Board of India (Sebi) observed from the analysis of the Private Placement Memorandum audit reports (PPM audit reports) of Utthishta Virat Fund for FY 2022-23 that the continued interest of sponsor as of March 31, 2023, stood at 2.44 per cent of investible corpus.
The regulator noted that the interest of the sponsor was lower than the limit of 2.5 per cent of the investible corpus as required to be maintained under AIF regulations, thereby Utthishta Virat Fund flouted the rules.
Further, Sebi also observed that the fund's manager -- Utthishta Management Advisors LLP -- and key managerial personnel (P Rama Krishna) were also in violation of the code of conduct of the AIF norms.
In October, Sebi issued a 'Notice of Summary Settlement' to Utthishta Virat Fund, Utthishta Management Advisors and Rama Krishna, intimating them that have flouted AIF regulations.
"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, along with remittance of the settlement amount of Rs 28.50 lakh to be paid, jointly and severally," the regulator said in the order.
In response to the same, the applicants filed applications and remitted the settlement amount of Rs 28.50 lakh, which was confirmed by Sebi and settled the matter.