Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of two alternative investment funds (AIFs) Argentum Dynamic Alternative Investment Fund and Utilis Fund for repeatedly failing to submit mandatory quarterly activity reports (QARs) despite regulatory requirements and multiple opportunities to respond.
In two separate orders, SEBI said both funds had failed to file QARs for the quarters ended March 2025, June 2025, September 2025 and December 2025. Under the AIF Regulations and SEBI's master circular dated 7 May 2024, registered AIFs are required to submit quarterly reports on their activities within 15 calendar days from the end of each quarter through SEBI's SI Portal.
In the order, SEBI noted that Argentum Dynamic failed to comply with the prescribed reporting requirements, prompting the regulator to initiate summary proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. A show-cause notice (SCN) was issued in April 2026 and sent through both registered post and email. While the postal communication was returned undelivered, the email was successfully delivered. However, Argentum Dynamic neither responded to the notice nor submitted any supporting documents.
After examining the matter, SEBI concluded that the fund had violated provisions requiring AIFs to furnish periodic reports to the regulator. The market regulator observed that no response had been received even after service of the SCN and held that the violation had been established. Accordingly, it cancelled the fund's registration with immediate effect.
In a separate case, Utilis Fund, was also found to have defaulted on filing the same quarterly reports for four consecutive quarters. SEBI initiated summary proceedings and issued an SCN to the fund in April 2026 through both registered post and email.
Unlike Argentum Dynamic, Utilis Fund responded to the regulator and stated that it wished to surrender its AIF registration due to the fund's inactivity. It claimed that no monies had been received from investors and that it had been filing NIL returns since inception. However, the fund admitted that it did not possess the necessary documents required to complete the surrender process.
SEBI sought documentary evidence to support these claims and granted the fund additional time to submit a detailed reply. Despite the extension, no supporting documents were furnished. The regulator also noted that, according to its records, no QARs had been filed by the fund for the quarters ending March 2025, June 2025, September 2025 and December 2025.
Observing that the reporting violations remained unrectified and that the fund had failed to substantiate its submissions, SEBI held that regulatory action was warranted under Section 12(3) of the SEBI Act read with Regulation 30A of the Intermediaries Regulations. The regulator therefore cancelled Utilis Fund's registration with immediate effect.
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