Tantallon Fund pays over Rs 55 lakh to settle case with Sebi over alleged FII norms violation

The Tantallon Fund has settled a probe by markets regulator Sebi into alleged violation of foreign institutional investors norms by paying over Rs 55 lakh towards settlement charges.

The regulator had initiated adjudicating proceedings in December 2017 against the firm to adjudge the alleged violation of norms pertaining to foreign institutional investors (FII).

While the proceedings were initiated, the firm in September 2018 filed an application under the settlement mechanism and requested Sebi to keep the adjudication proceedings in abeyance.

Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

The company in its meeting with the regulator's internal committee in November 2018 proposed to pay settlement charges.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of Rs 55.02 lakh which was subsequently approved by the regulator's panel of whole-time members.

However, the committee found that the settlement amount was remitted after the expiry of 30 calendar days from the receipt of notice of demand.

Hence, an additional Rs 33,467 was charged from the firm as simple interest amount. Therefore, a total amount of Rs 55.35 lakh has been submitted by the firm towards settlement charges.

Accordingly, the Securities and Exchange Board of India (Sebi) in its order on Thursday disposed of the adjudicating proceedings initiated against The Tantallon Fund. It further said enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them is found to be untrue.