Regulatory Violations and Non-Compliance Lead to Deregistration
Unmesh Gujarathi
Sprouts News Exclusive
The Securities and Exchange Board of India (SEBI) has revoked the registrations of 19 Foreign Venture Capital Investors (FVCIs) due to regulatory violations and non-compliance with registration conditions. These entities, based in Mauritius, Singapore, and Cyprus, were found to be defunct and failed to meet SEBI’s regulatory requirements.
SEBI’s investigation revealed that 14 of these entities had officially ceased operations, with 11 being defunct for over five years and three having shut down between 10 months and three years ago.
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According to Sprouts News, despite being issued show-cause notices in December 2024, none of the entities responded. Custodians confirmed that these FVCIs did not hold any securities in India. Additionally, the companies failed to submit quarterly reports and did not inform SEBI of changes in their eligibility criteria, as required by regulations.
The entities whose registrations have been canceled include:
– AOC Partners APGF
– Asia Power FVCI Ltd
– AV 2014 Global Investment Ltd
– Axis Capital Mauritius
– Axis India Infrastructure Holdings
– Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd
– Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI Pte Ltd
– Canaan VII Mauritius
– Ecolutions Singapore Pte Ltd (ESGP)
– Firstmark India Mauritius III Ltd
– Global Asia Venture Company (Mauritius)
– HS Venture Ltd
– IFCI Sycamore India Infrastructure Fund
– Omega FVCI Investments PTE Ltd
– P6 Asia Holdings Investments (Cyprus) Ltd
– Pequot India Mauritius IV Ltd
– Sandler Mauritius Investments Ltd
– Structured Investments Ltd
– Summit Partners India Venture Capital Investments
SEBI emphasized that these entities were required to disclose their inactivity, as it constitutes material information. The regulator’s order highlighted that the failure to maintain their existence as incorporated entities, the non-submission of quarterly reports, and the lack of communication regarding changes in eligibility criteria were significant breaches of the FVCI Regulations, 2000.
Sprouts News further reports that this move underscores SEBI’s commitment to ensuring compliance and transparency within the financial sector.
