Finideas Growth Fund, 3 others pay Rs 12.75 lakh to settle case with Sebi

Sebi observed that Finideas Growth Fund, an AIF, exceeded the permissible investment cap of 10% of its net investable funds in a single company between May 31, 2023, and July 31, 2023

Finideas Growth Fund, along with three associated entities, settled a case with the Securities and Exchange Board of India (Sebi) on Friday by paying a sum of Rs 12.75 lakh over a breach of investment limits under Alternative Investment Fund (AIF) regulations set by the regulatory body.

 

The settlement involved Finideas Growth Fund, its manager Finideas Investment Advisor, and key management personnel Govind Jhawar and Udipth Tale. According to the Sebi's settlement order, the entities paid the amount to resolve alleged violations of AIF norms. 

 

Sebi observed that Finideas Growth Fund, an AIF, exceeded the permissible investment cap of 10 per cent of its net investable funds in a single company — Indian Railway Finance Corporation Ltd (IRFC) — between May 31, 2023, and July 31, 2023. This breach led to non-compliance with AIF regulations.

 

The parties submitted applications seeking to settle potential enforcement proceedings through a settlement mechanism and remitted the prescribed amount.

 

Sebi, in its order, said "The specified proceedings in respect of which the notice was issued are hereby settled in respect of the applicants." 

 

(With agency inputs)