SEBI Cracks Down on Regulatory Breaches: Rs 29 Lakh Fines Imposed
SEBI has levied a total of Rs 29 lakh in penalties against six entities, including India Asset Growth Fund and Essel Finance Advisors, for violations of AIF regulations. The infractions include failure to disclose disciplinary actions, improper valuation methods, and delayed legal compliance, potentially misleading investors.
- Country:
- India
In a decisive move, the Securities and Exchange Board of India (SEBI) has imposed a total fine of Rs 29 lakh on six entities for breaching alternative investment fund (AIF) regulations. The penalized parties include India Asset Growth Fund (IAGF), Essel Finance Advisors, and trustee Vistra ITCL (India), among others.
The fines were distributed as Rs 11 lakh on IAGF, Rs 10 lakh on Arpan Sarkar and Jaykishan Kikani collectively, Rs 6 lakh on Vistra ITCL, and Rs 2 lakh imposed both on Essel Finance Advisors and its CEO Vishnu Prakash Rathore. SEBI's extensive 39-page order highlighted numerous lapses in regulatory compliance between April 2021 and March 2022.
The watchdog noted that IAGF failed to disclose vital information in its placement memorandum, including disciplinary and litigation records. Additional infractions included improper asset valuation and delayed investor grievance responses. These breaches were significant enough to potentially mislead investors and disrupt regulatory oversight.
(With inputs from agencies.)
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