Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of three alternative investment funds (AIFs), Indostar Credit Fund, Indostar Recurring Return Credit Fund and Ventureland Asia Advisors Services LLP, for repeatedly failing to file mandatory quarterly activity reports (QARs) with the regulator, despite multiple opportunities and show-cause notices.
In three separate orders, SEBI said the entities failed to submit QARs for the quarters ending March 2025, June 2025, September 2025 and December 2025, in violation of Regulation 28 of the SEBI (Alternative Investment Funds) Regulations, 2012, and clause 15.1.1 of the SEBI Master Circular dated 7 May 2024. The reports were required to be filed electronically through the SEBI intermediary (SI) portal within 15 calendar days from the end of each quarter.
SEBI initiated summary proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008, after observing persistent non-compliance by the AIFs.
Indostar Credit Fund told the regulator that the fund had become dormant after its tenure expired in June 2020 and had filed a surrender application in January 2022. The Fund attributed the non-filing of QARs to technical and administrative oversight and stated that any delayed filings would have reflected ‘NIL’ activity.
Similarly, Indostar Recurring Return Credit Fund said it had remained dormant since inception without launching any scheme or onboarding investors and had applied for surrender of registration in December 2017 and February 2018. It also claimed the lapse occurred due to technical and administrative oversight.
Ventureland Asia Advisors Services LLP informed SEBI that it had attempted to comply with the reporting requirements by emailing reports and sought guidance for completing the filings through the SI portal. However, the regulator noted that emailing Excel sheets did not satisfy the statutory requirement of electronic filing through the designated portal.
SEBI observed that compliance with reporting timelines is a strict statutory obligation and cannot be waived merely because an AIF is dormant, has NIL activity or has applied for surrender of registration. The regulator said that failure to file mandatory reports hampers its monitoring mechanism and constitutes a violation, irrespective of the impact on investors.
Rejecting the submissions of the entities, SEBI held that subsequent attempts to regularise filings do not cure past violations. The regulator further noted that the master circular on AIFs does not provide any exemption from filing QARs for dormant funds or those that have sought surrender of registration.
Accordingly, exercising powers under Section 12(3) of the SEBI Act, SEBI cancelled the certificates of registration of all three AIFs with immediate effect.
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