Economic Fraud
SEBI Cancels Registration of 19 Foreign Venture Capital Investors Over Regulatory Violations
The Securities and Exchange Board of India (SEBI) has revoked the registration of 19 Foreign Venture Capital Investors (FVCIs), including entities from Mauritius, Singapore, and Cyprus, citing multiple violations of regulatory norms and non-compliance.
SEBI found these entities to be defunct, with 11 of them inactive for over five years and three others non-operational for periods ranging from 10 months to three years in their respective jurisdictions. Despite issuing show-cause notices in December 2024, SEBI did not receive any responses from the entities.
According to SEBI, custodians confirmed that these entities no longer held any securities in India. Furthermore, the entities failed to meet the eligibility criteria for FVCI registration, as they had ceased to exist in their respective jurisdictions, did not submit quarterly reports, and failed to notify regulatory authorities about changes in their status.
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SEBI’s order emphasized that FVCIs were required to disclose the discontinuation of their activities as it constitutes material information. The regulator also pointed out that the entities were not found at their registered addresses, indicating that they had failed to update SEBI on address changes and other mandatory filings.
Among the 19 entities whose registrations have been canceled are:
- Blackstone Capital Partners (Singapore) VI FVCI
- Axis Capital Mauritius
- IFCI Sycamore India Infrastructure Fund
- Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI
- Summit Partners India Venture Capital Investments
The crackdown underscores SEBI’s commitment to maintaining transparency and compliance in India’s financial ecosystem by ensuring that foreign investors adhere to regulatory requirements.