Rajiv Jain's GQG Partners pays $500,000 to settle SEC charges over whistleblower protection rules

GQG Partners has also made significant bets across infrastructure, consumer goods and energy sectors.

GQG Partners, founded by Rajiv Jain, has agreed to pay a $500,000 to settle charges with the US Securities and Exchange Commission over alleged violations of whistleblower protection rules, the market regulator said.

Between 2020 and 2023, GQG Partners made 12 individuals sign non-disclosure agreements that were extremely restrictive and prohibited them from disclosing confidential information, even to government regulators and agencies, the US SEC said in an announcement on September 26.

GQG Partners settled ahead of administrative and cease-and-desist proceedings without admitting or denying the findings. However, the Rajiv Jain-led firm acknowledged the SEC's jurisdiction in the case.

“Whether through agreements or otherwise, firms cannot impose barriers to persons providing evidence about possible securities law violations to the SEC, as GQG did,” said Corey Schuster, Co-Chief of the Division of Enforcement’s Asset Management Unit.

Without admitting or denying the SEC’s findings, GQG agreed to be censured, to cease and desist from violating the whistleblower protection rule, and to pay a $500,000 civil penalty.

"GQG takes its regulatory compliance obligations very seriously. We appreciate the professionalism displayed by the SEC staff throughout this inquiry. We believe that we are well positioned to serve our team and clients going forward," it said in a statement.

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GQG Partners is a global boutique asset management firm known for its active portfolio management and long-term value delivery to clients. Through his firm, Jain, chairman and chief investment officer, has invested in several Indian companies, including some from the Adani Group.

His investments in the Gautam Adani-led firms came after short seller Hindenburg Research’s report in January 2023, which called out corporate governance lapses and debt-related issues in the Adani Group, which led to a massive correction in Adani group stock prices.

GQG Partners has also made significant bets across infrastructure, consumer goods and energy sectors in India's equity market.

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