AIF Finideas Growth Fund, its manager, KMP pay Rs 12.75 lakh for settling violation

The fund's investment had resulted in the non-compliance of Regulation 15(1)(d) of the SEBI (Alternative Investment Funds) Regulations, 2012., according to the SEBI order.

Alternative Investment Fund (AIF) Finideas Growth Fund, its manager Finideas Investment Advisor Private
Limited and its key management personnel Govind Jhawar and Udipth Talera have paid Rs 12.75 lakh to settle violation of AIF Regulations.

According to the settlement order issued on April 4 by the Securities and Exchange Board of India (SEBI), the AIF had breached the concentration limit of 10 percent of net investable funds in a single investee company, i.e. Indian Railway Finance Corporation Limited from May 31, 2023 till July 31, 2023.

This resulted in the non-compliance of Regulation 15(1)(d) of the SEBI (Alternative Investment Funds) Regulations, 2012.

SEBI issued a ‘Notice of Summary Settlement’ dated December 02, 2024 and email dated January 30, 2025 to the AIF, its manager and its KMP intimating them that they have violated various provisions of the AIF Regulations. The regulator also informed that the enforcement proceedings that are to be initiated against them for the same could be settled and disposed of by filing an application under the Settlement Regulations and by remitting a settlement amount of Rs 12.75 lakh.

The AIF, its manager and the KMP proposed to settle and remitted the amount on February 12, 2025.