Emerging India Focus Funds, which was named in the Hindenburg report, on Monday settled a case relating to the alleged violations of foreign portfolio investor (FPI) rules with the Securities and Exchange Board of India on payment of Rs 64.35 lakh towards settlement charges.
The settlement came after the applicant filed an application with Sebi proposing to settle the proceedings initiated against it, “without admitting or denying the findings of facts and conclusions of law” through a settlement order.
Sebi initiated adjudication proceedings against the applicant and issued a showcause notice in February for the alleged violations of FPI Regulations and Intermediaries Regulations. Trident Trust Company is the declared beneficial owner of the Emerging India Focus Fund and the EM Resurgent Fund, two among the 13 foreign entities that came under Sebi’s scrutiny
Pending adjudication proceedings, Emerging India Focus Funds filed an application with Sebi and shelled out Rs 64.35 lakh on November 13 to settle the alleged violations.
“In view of the acceptance of the settlement terms and the receipt of settlement amount… by Sebi, the instant adjudication proceedings initiated against applicant vide SCN (showcause notice) dated February 29, 2024, is disposed of,” Sebi said in its order.
The panel of Whole Time Members of the Sebi approved the recommendation of the High-Powered Advisory Committee (HPAC) on October 28, 2024 and the same was communicated by the Sebi to the applicant on October 29. Subsequently, the applicant vide email dated November 13, 2024 informed about the remittance of the settlement amount, the receipt of which is confirmed, according to the Sebi.
According to sources, for avoidance of doubt, the case that has been settled with Emerging India Focus Funds (EIFF) has nothing to do with the Adani/ Hindenburg report related enforcement actions undertaken by SEBI.
The source added that specifically, this case does not form a part of the 24 cases that were reported to the Expert Committee set up by the Hon’ble Supreme Court after the Hindenburg Report of January 2023.