Capital market regulator SEBI canceled the registration of five Alternative Investment Funds (AIFs). The biggest reason for this is negligence in submitting quarterly reports. Against which strict action has been taken by SEBI. According to the information, these funds were repeatedly being negligent in submitting reports. Despite several warnings, no effect was visible. Due to which the registration of these funds was canceled by SEBI. Let us tell you on which funds action has been taken by SEBI.
Action taken on these funds
In separate orders, SEBI canceled the registration of Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust and Victory Investment Fund with immediate effect. The regulator said that these institutions failed to file quarterly activity reports for the quarters ending March, June, September and December 2025, whereas specific disclosures are mandatory for registered AIFs under the regulator’s rules.
Show cause notice was issued
As per the existing rules, all AIFs are required to submit quarterly reports through Sebi’s intermediary portal within 15 days of the end of each quarter. Following these lapses, SEBI initiated summary proceedings under intermediary rules and issued show cause notices to these entities in April 2026. Given that the violations were proven and the entities had failed to comply with the reporting norms, Sebi decided that it was appropriate to cancel the registration under the applicable rules. After this action, the funds have also learned a lesson, which might have been delaying in filing the reports. According to experts, it was very important for SEBI to take this action. So that no other fund can make such a mistake.
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