Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
• The Securities and Exchange Board of India (Sebi) has cancelled the registrations of five Alternative Investment Funds (AIFs) for failing to comply with mandatory reporting requirements.
• The affected entities are Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust and Victory Investment Fund.
• The funds did not submit Quarterly Activity Reports (QARs) for all four quarters of 2025 despite regulatory obligations.
• Sebi initiated summary proceedings and issued show-cause notices in April 2026 after identifying repeated non-compliance.
• The regulator concluded that the violations were established and ordered immediate cancellation of registrations under applicable regulations.
The Securities and Exchange Board of India (Sebi) has cancelled the registrations of five Alternative Investment Funds (AIFs) with immediate effect after determining that they repeatedly failed to submit mandatory Quarterly Activity Reports (QARs), a key regulatory requirement for registered funds. The action was announced on June 1 through separate orders issued by the capital markets regulator.
The entities whose registrations have been cancelled are Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust and Victory Investment Fund. According to Sebi, the funds did not comply with reporting obligations for the quarters ended March, June, September and December 2025.
Under the existing regulatory framework governing AIFs, registered funds are required to submit Quarterly Activity Reports within 15 days of the end of each quarter. These reports must be filed through Sebi’s Intermediary Portal and contain prescribed disclosures intended to support regulatory oversight and monitoring of fund activities.
Sebi stated that despite these obligations, the five entities failed to furnish the required reports across all four reporting periods during 2025. The regulator viewed the repeated lapses as a breach of compliance requirements applicable to registered AIFs.
Following the non-submission of the reports, Sebi commenced summary proceedings under the Intermediaries Regulations. As part of the enforcement process, the regulator issued show-cause notices to the concerned entities in April 2026, seeking explanations regarding the reporting failures and the proposed regulatory action.
After examining the matter, Sebi concluded that the violations had been established and that the entities had not adhered to the prescribed reporting norms. The regulator observed that compliance with periodic disclosure requirements is an essential obligation for registered intermediaries and investment vehicles operating under its supervision.
In its orders, Sebi held that the nature and extent of the reporting defaults warranted cancellation of registration under the applicable regulatory provisions. Consequently, the registrations of all five AIFs have been revoked with immediate effect.
The action underscores Sebi’s continued focus on enforcing compliance standards within the alternative investment fund sector, particularly with regard to disclosure and reporting obligations that form part of the regulatory framework governing registered investment vehicles in India.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
