ICICI Prudential Asset Management Company (AMC), alongside two other entities, has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding regulatory infractions related to delays in winding up a venture capital scheme and distributing returns to investors. The settlement involves a payment of ₹14.35 lakh.
The entities that entered into the settlement include ICICI Prudential AMC, ICICI Prudential Venture Capital Fund, and ICICI Prudential Trust. They submitted suo-motu applications to SEBI, seeking resolution of the alleged violations without admitting or denying the findings of facts and conclusions of law.
This case revolves around the ICICI Prudential Venture Capital Fund’s launch of the ICICI Prudential Venture Capital Fund – Real Estate Scheme – I. The scheme had an original duration of four years starting from September 26, 2013, with provisions for two one-year extensions, as noted in SEBI’s order dated April 16.
In practice, the scheme’s term was extended for an additional two years, pushing the end date to September 2019. Further extensions totaling four years were granted, leading to a final date of September 25, 2023, when the scheme ceased operations. The liquidation of investments and the exit process concluded on December 25, 2023.
SEBI indicated that this winding-up process experienced an approximate four-year delay before the proceeds could be distributed to investors. In response, the applicants filed settlement applications to resolve potential proceedings for these alleged violations. Following the submission, SEBI’s committee recommended a joint financial settlement of ₹14.35 lakh, which the applicants subsequently paid.
SEBI confirmed that any proceedings that could have been initiated concerning these violations are now settled for the applicants involved.
