The Finideas Growth Fund, along with its management team and key personnel, has reached a settlement with the Securities and Exchange Board of India (Sebi) regarding a breach of regulations pertaining to Alternative Investment Funds (AIF). The involved parties agreed to pay a settlement amount of ₹12.75 lakh to resolve the matter.

Background of the Case

Sebi’s enforcement action was triggered after it was found that the Finideas Growth Fund had surpassed the allowed investment limit in a single company, specifically the Indian Railway Finance Corporation Ltd. This breach occurred between May 31, 2023, and July 31, 2023, and was deemed a violation of AIF regulatory frameworks.

Settlement Agreement

To preempt potential enforcement proceedings, the entities involved submitted applications to Sebi seeking resolution through a settlement order. In response, Sebi confirmed the settlement of the specified proceedings, effectively closing the investigation into the compliance violations tied to the fund’s activities.

Conclusion

The case highlights the importance of adhering to AIF regulations and the implications of non-compliance. Finideas Growth Fund’s proactive approach in settling the matter underscores the need for diligence in investment practices within the AIF sector.