Indiabulls AIF, related entities settle case with Sebi for Rs 1.43 crore

Indiabulls AIF and related entities along with former officials have reached a settlement with the Securities and Exchange Board of India (Sebi) for a payment Rs 1.43 crore, concluding regulatory proceedings that identified serious alleged violations of the Sebi (Alternative Investment Funds) Regulations, 2012, according to a settlement order dated September 17.

The settlement involves seven parties, including Indiabulls AIF, Indiabulls Real Estate Fund, Indiabulls Dual Advantage Real Asset Fund, Indiabulls Asset Management Company, and individuals Ambar Maheshwari, Amit Jain and Parth Muria.

The proceedings were initially overseen by an Adjudicating Officer appointed by Sebi. Subsequently, the applicants proposed settlement terms in November 2024 which were revised in February 2025. The High-Powered Advisory Committee (HPAC) reviewed the proposal in July 2025 and recommended settlement for a payment of Rs 1.43 crore.

Sebi had initiated adjudication proceedings after inspections revealed alleged violations such as pledging scheme assets to secure loans for investee companies, uneven commitment drawdowns across unit classes, breaches of concentration limits in investee companies, failure to follow prescribed valuation frequencies, misrepresentation of scheme valuation to investors, non-compliance with bi-annual security valuation requirements, and submission of inaccurate Compliance Test Reports.