Sebi Settles AIF Rule Violation Case: Rs 22.75 Lakh Fee Paid

New Delhi, Jan 31 (PTI) Three entities paid markets regulator Sebi a fee of Rs 22.75 lakh to settle a case pertaining to breach of investment limit by Oneil Quant Fund that led to flouting of Alternative Investment Fund (AIF) rule.

Those who settled the case with the Securities and Exchange Board of India (Sebi) are Oneil Capital Trust, Oneil Capital Management India, and Anupam Singh.

The order came after the applicants proposed to settle the enforcement proceedings that may be initiated against them for the violation of the AIF (Alternative Investment Fund) Regulations.

They paid Rs 22.75 lakh jointly in December 2023 and consequently, the regulator in a settlement order on Tuesday "ordered that the specified proceedings in respect of which the notice was issued are hereby settled in respect of the applicants".

The regulator observed that Oneil Quant Fund scheme of Oneil Capital Trust (AIF) breached the concentration limit of 10 per cent of investable funds in a single investee company for The Great Eastern Shipping Company Ltd from October 31, 2022 till January 5, 2023 and for ITC Ltd from February 21, 2023 till June 27, 2023, as per the settlement order.

The breach was in non-compliance of the Sebi's AIF rules, it added.

Going by the order, the regulator had issued a notice of summary settlement in October 2023 to the AIF, its manager and the key managerial personnel, intimating them that the relevant provisions of the AIF Regulations have been violated on account of the breach of the concentration limit.