Unifi Capital and 7 Additional Parties Pay Rs 38 k to Resolve Case With Sebi

In a matter involving the alleged breach of AIF regulations and the payment of Rs 38 lakh, Unifi Capital and seven other people reached a settlement with capital markets regulator Sebi.

The people are Rajgopalan Santhanam, Govindasamy Maran, Christopher Vinod, Sandeep Nadigadda Reddy, M S Sundararajan, and Sarath Chandra Reddy Kakani. Sebi gave the command.

 

The noticeees’ proposal to end the current proceedings “without admitting or denying the findings” was followed by the ruling.

 

According to the settlement decision issued on Tuesday by Sebi’s Adjudicating Officer Biju S, the adjudication processes brought against the noticees (Unifi Capital, Kakani, Narendranath, Maran, Vinod, Reddy, Sundararajan, and Santhanam) by show cause notice of October 19, 2022 are concluded.

 

It was claimed in the show cause notice (SCN) filed in response to the notifications that Unifi operates a category III AIF in which it made investments in mutual funds classified as big capital funds in breach of AIF guidelines.

 

AIFs are required by regulations to invest in derivatives, complicated structured products, listed or unlisted firms, or securities.

 

The regulator also claimed that as of June 30, 2020, the AIF had not disclosed to investors the degree of leverage resulting from its position in futures.

 

The ruling further claimed that the AIF had prevented Sebi from implementing its rules for using the SCORES platform to resolve investor complaints.

 

After the SCN was issued, the noticees submitted settlement requests to Sebi, who suggested that the case be resolved on payment of Rs 38 lakh (including the sum for the settlement of the suo moto application filed by Unifi AIF), it said.

 

The noticeees paid the sum and resolved the dispute with Sebi as a result.