Fund mismanagement: Sebi settles Indiabulls AIF case for ₹1.43 cr

Market regulator Sebi has settled adjudication proceedings against Indiabulls Alternative Investment Funds (AIF) and its associated entities for a payment of ₹1.43 crore. The settlement relates to alleged violations observed during an inspection of Indiabulls’ AIF.

The entities against whom the adjudication proceedings were launched included Indiabulls AIF, Indiabulls Real Estate Fund, Indiabulls Dual Advantage Real Asset Fund, Indiabulls Asset Management Company, Ambar Maheshwari, Amit Jain and Parth Muria. 

It was alleged that the applicants had violated various provisions of SEBI, following which the regulator appointed Amar Navlani as the adjudicating officer.

Sebi found that the entities pledged Indiabulls Dual Advantage Real Asset Fund (IBDARA) scheme assets for a loan taken by an investee company. They failed to draw down an equal percentage of commitment across all classes of units for the IBDARA scheme. They also failed to adhere to concentration limits in both schemes, the Indiabulls Real Estate Fund (IBREF) and the Indiabulls Dual Advantage Real Asset Fund (IBDARA). They also failed to ensure proper valuation frequency of investments for these schemes.

Sebi also accused the applicants of misrepresenting the financial information related to the valuation of the IBDARA scheme to the investors. "Applicants failed to comply with the deficiency letter dated May 12, 2017, issued post inspection held in FY 2015 advising the fund to conduct valuation of its securities biannually, and submitted inaccurate information in the CTR filed with the trustee."

Following this, these entities proposed to settle the instant proceedings initiated against them, without admitting or denying the findings of fact and conclusions of law, through a settlement order on November 25, 2024.

Sebi, in its meeting held on July 03, 2025, considered the settlement terms and recommended the settlement amount of ₹1,43,32,500. The companies paid the settlement amount on September 10, 2025, and Sebi disposed of adjudication proceedings initiated against them.