Raselle Capital VCC Settles With SEBI For Alleged FPI Regulation Violations With Rs 1.23 Crore Payment

Rajesh Kumar

6 July 2024 7:45 AM GMT

  • Raselle Capital VCC Settles With SEBI For Alleged FPI Regulation Violations With Rs 1.23 Crore Payment

    Raselle Capital VCC, a foreign portfolio investor, has settled an adjudication case with the Securities and Exchange Board of India (SEBI) regarding alleged violations of Foreign Portfolio Investor (FPI) rules. The settlement was reached after the investor paid Rs 1.23 crore as settlement charges. The matter originated from alleged violations of SEBI's FPI regulations by...

    Raselle Capital VCC, a foreign portfolio investor, has settled an adjudication case with the Securities and Exchange Board of India (SEBI) regarding alleged violations of Foreign Portfolio Investor (FPI) rules. The settlement was reached after the investor paid Rs 1.23 crore as settlement charges.

    The matter originated from alleged violations of SEBI's FPI regulations by Raselle Capital VCC. SEBI's adjudication proceedings were initiated under the SEBI Act, 1992, for potential breaches of specific regulatory requirements. The alleged violations of Regulation 22(1)(c) of the SEBI (Foreign Portfolio Investors) Regulations, 2019, and Clause 12 of Part A of the Master Circular for FPIs and DDPs dated December 19, 2022.

    Regulation 22(1)(c) of the SEBI (Foreign Portfolio Investors) Regulations, 2019, deals with the general obligations and responsibilities of FPIs. It outlines the compliance requirements and responsibilities that FPIs must adhere to in their operations.

    Clause 12 of Part A of the Master Circular for FPIs and DDPs states the compliance and reporting obligations for FPIs, including timely reporting of non-compliance, providing required information to regulatory bodies etc.

    On December 14, 2023, SEBI appointed an adjudicating officer to investigate and adjudicate the matter. Subsequently, a Show Cause Notice (SCN) was issued to Raselle Capital VCC. The notice called upon the company to explain why an inquiry should not be conducted and penalties imposed for the alleged violations.

    While the adjudication proceedings were pending, Raselle Capital VCC opted to settle the case by filing a settlement application. The application was submitted in accordance with SEBI's (Settlement Proceedings) Regulations, 2018. The settlement process allows for the resolution of enforcement matters without admitting or denying the violations.

    Following the submission of the settlement application, Raselle Capital VCC engaged with SEBI's Internal Committee to discuss potential settlement terms. After negotiations, a revised settlement proposal was submitted via email. SEBI's High Powered Advisory Committee (HPAC) reviewed the proposal and recommended settling the case upon the payment of Rs 1.23 crore.

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