ICICI Prudential AMC and Two Other Asset Managers Settle Regulatory Violation with Sebi for Rs 14.35 Lakh

ICICI Prudential Asset Management Company Settles Case with Sebi

ICICI Prudential Asset Management Company (AMC) and two other entities have reached a settlement with the Securities and Exchange Board of India (Sebi) regarding regulatory violations related to delays in winding up a venture capital scheme and distributing proceeds to investors. The entities involved, ICICI Prudential AMC, ICICI Prudential Venture Capital Fund, and ICICI Prudential Trust, filed suo-motu settlement applications with Sebi, proposing to settle the alleged violations without admitting or denying the findings of facts and conclusions of law.

The case revolves around ICICI Prudential Venture Capital Fund's Real Estate Scheme-I, which was launched on September 26, 2013, with an initial tenure of four years. The scheme's term was extended twice, first until September 2019, and then again by two two-year extensions, lasting until September 25, 2023, when the scheme finally expired. The liquidation and exit of all investments were completed on December 25, 2023.

As a result, the winding-up process was delayed by approximately four years, leading to a delay in distributing the proceeds to the investors, according to Sebi. The applicants filed the settlement applications to resolve potential proceedings against them for the alleged violations. Following the receipt of the applications, Sebi's committee recommended that the applicants jointly and severally pay Rs 14.35 lakh, which they have since remitted.

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Settlement Details

Sebi has accepted the settlement, stating that any proceedings initiated for the violations are settled in respect of the applicants.