Alternative Investment Funds: 9 entities settle case of alleged AIF rules violations with Sebi
As many as nine entities, including PenBrook Capital Advisors and Peninsula Brookfield Trustee, on Friday settled with Sebi a case pertaining to alleged violations of alternative investment funds rules after paying Rs 85 lakh towards settlement charges.
As many as nine entities, including PenBrook Capital Advisors and Peninsula Brookfield Trustee, on Friday settled with Sebi a case pertaining to alleged violations of alternative investment funds rules after paying Rs 85 lakh towards settlement charges.
The settlement order comes after the entities approached Sebi to settle the case in the matter of Peninsula Brookfield India Real Estate Fund, AIF.
The adjudication proceedings initiated against the nine entities under the show cause notice issued in March 2021 have been disposed of, Sebi said in the order.
The Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against the entities pursuant to investigation in the matter of Peninsula Brookfield India Real Estate Fund, AIF or AIF?Penbrook.
The nine entities that settled the case are PenBrook Capital Advisors, Rajeev Piramal, Narendra Aneja, Sridhar Rengan, Chetan Desai, Peninsula Brookfield Trustee, Urvi Ashok Piramal, Anuj Ranjan, and Prashant Sagwekar.
In the show cause notice, it was alleged that the entities violated the provisions of AIF (Alternative Investment Funds) Regulations by accepting investment of value less than Rs 1 crore from 198 investors and by not having continuing interest of Rs 5 crore in the form of investment in the AIF.
In addition, it was alleged that the entities extended the tenure of the fund beyond the permissible period and that the trustee and its directors failed to ensure that the information submitted by the investment manager and its compliance officer were true.
AIF-PenBrook appointed Prashant Sagwekar as compliance officer who was also part of the key investment team.
It was alleged that Sagwekar had failed to monitor the compliance of various requirements of AIF Regulations.
Subsequent to issuance of the show cause notice, the entities had filed an application in May 2021 with Sebi for settlement.
According to the regulator, nine entities jointly made a payment of Rs 63.75 lakh and in addition, Sagwekar paid Rs 21.25 lakh towards the settlement amount.
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