Omnivore India, others settles with Sebi over delay in winding up VCF

Omnivore India Capital Trust and Omnivore Capital Management Advisors have settled a case pertaining to alleged delay in winding up the venture capital fund on payment of Rs 14.62 lakh.

This came after the two entities filed an application with Sebi proposing to settle the enforcement proceedings that may be initiated against them for the violation of regulatory norms.

In its settlement order passed on Wednesday, Sebi noted that the entities shelled out Rs 14.62 lakh and settled the matter. Accordingly, the regulator said it would not "initiate any enforcement action against the applicants for the said violations".

The case relates to an alleged delay in winding up the venture capital fund, Omnivore India Capital Trust. The fund was registered with Sebi on June 1, 2011, as a Venture Capital Fund. The initial close and final close of the fund happened on April 2, 2012 and January 16, 2014, respectively.

The Securities and Exchange Board of India (Sebi), which conducted a thematic inspection of Omnivore India Capital Trust, observed that the tenure of the fund was for a period of eight years from the date of final close -- January 16, 2014 but that two more extensions of 1 year each were granted making the maximum permissible tenure of the fund to be 10 years.

On attaining the maximum permissible tenure, the fund was required to divest the investment and distribute the proceeds within three months by April 15, 2024.

The fund, through a letter dated January 16, 2024, intimated Sebi and investors about the winding up of the schemes.

On December 3, 2024, the fund wound up its schemes with a delay of eight months beyond the stipulated period of three months, resulting in the violation of the Venture Capital Fund norms and Alternative Investment Fund (AIF) rules, Sebi noted.