SEBI Cancels Lares Alpha Scheme's Registration
Moneylife Digital Team 09 June 2026
SEBI has cancelled the registration of Lares Alpha Scheme, an alternative investment fund (AIF), after finding that the fund repeatedly failed to submit mandatory quarterly activity reports (QARs) for four consecutive quarters during 2025. 
 
Lares Alpha Scheme, registered as an AIF under the SEBI (Alternative Investment Fund) Regulations, 2012, failed to file QARs for the quarters ending March 2025, June 2025, September 2025 and December 2025. Under SEBI regulations and the AIF Master Circular, all registered AIFs are required to submit activity reports within 15 days of the end of every quarter through the SEBI Intermediary (SI) Portal. 
 
Following the compliance lapse, SEBI initiated summary proceedings and issued a show-cause notice (SCN) in April 2026, asking the Fund to explain why its registration should not be cancelled. In response, Lares Alpha Scheme admitted that the reports had not been filed on time and attributed the failure to technical and login issues on the SI Portal. It also claimed that it had repeatedly attempted to contact SEBI for technical assistance but was unable to obtain support. 
 
The Fund further argued that it had not commenced operations, had not raised any money from investors and therefore posed no compliance or investor-risk concerns. It also stated that it was willing to submit pending reports once the alleged portal issues were resolved. 
 
However, SEBI rejected these explanations. The regulator noted that the AIF regulations do not provide any exemption from reporting obligations merely because a fund has not yet launched operations. Even dormant funds must file NIL reports within the prescribed timelines. SEBI also observed that the noticee failed to provide documentary evidence to support its claims of persistent technical issues or of efforts to resolve them. 
 
According to the order, timely filing of QARs is a mandatory compliance requirement that enables SEBI to monitor regulated entities. The regulator emphasised that subsequent attempts to comply do not erase earlier violations and that statutory reporting obligations must be fulfilled in the manner prescribed under the law. 
 
After considering the facts and submissions, SEBI concluded that the violations had been established and ordered the cancellation of the fund's certificate of registration under Section 12(3) of the SEBI Act read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.
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