Sebi cancels registration of 19 foreign venture capital investors

The Securities and Exchange Board of India (Sebi) has cancelled the registration of 19 foreign venture capital investors (FVCIs) -- which includes entities based in Mauritius, Singapore, and Cyprus -- over norms violations.

 

Sebi has alleged multiple violations of regulatory norms and found these entities to be defunct.

 

Among the 14 entities whose strike-off dates were available, 11 had been defunct for more than five years, while three had been defunct for periods ranging from 10 months to three years in their respective jurisdictions. Sebi had issued show-cause notices to these 19 entities in December 2024, but did not receive any response.

 

 

Custodians confirmed to the regulator that these entities did not hold any securities in India. Sebi alleged that these entities no longer satisfied the condition of being incorporated outside India, as they had ceased to exist in their respective jurisdictions, failed to file quarterly reports, and failed to notify changes in eligibility criteria.

 

In its order, Sebi highlighted that the FVCIs should have disclosed the discontinuation of their activities, which is material information. The show-cause notice alleged that the entities were not found at their registered addresses, indicating that changes in address were not communicated to SEBI and that they failed to submit periodic reports as required under the FVCI Regulations.   

Some of the entities whose FVCI registration has been cancelled:

 

Blackstone Capital Partners (Singapore) VI FVCI

 

Axis Capital Mauritius

 

IFCI Sycamore India Infrastructure Fund

 

Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI

 

Summit Partners India Venture Capital Investments