Investcorp Settles with Sebi Over AIF Rules Violation

Investcorp Real Estate Yield Fund and six other entities have settled a case with Sebi regarding the violation of Alternate Investment Funds rules by paying Rs 25.5 lakh. The settlement concludes proceedings initiated due to delays in asset liquidation beyond the stipulated timelines as per AIF regulations.

Investcorp Real Estate Yield Fund and six other associated entities have come to an agreement with India's market regulator, Sebi, over breaches of the Alternate Investment Funds (AIF) rules, agreeing to pay a settlement of Rs 25.5 lakh.

The issue centered around the extension of the Investcorp Real Estate Yield Fund's tenure, as assets were not liquidated within the timelines specified by AIF regulations. This led to a violation of regulatory provisions, according to Sebi legal documents.

Despite the Trustee alerting Sebi of the Fund's winding up in November 2022, disinvestment only concluded by July 6, 2024, exceeding regulatory timelines by over a year. The settlement order effectively closes the case on violations by Investcorp and its associates.