SEBI Issues Order to Cancel Registration of 19 Foreign VC Funds According to SEBI, the funds have been defunct and have stopped registering themselves in their jurisdictions. SEBI also found that FVCIs had stopped publishing their quarterly reports.
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Market regulator Securities and Exchange Board of India (SEBI) has issued an order and canceled registrations of 19 foreign venture capital institutions (FVCI) after investigations revealed violations of capital market regulations by the firms.
Notable firms like Blackstone Capital from Singapore and Mauritius-based Axis Capital were on the list. According to SEBI, the funds have been defunct and have stopped registering themselves in their jurisdictions. SEBI also found that FVCIs had stopped publishing their quarterly reports.
"It was observed that the 19 FVCIs had also not submitted quarterly data on SEBI Intermediaries ("SI") portal for even 4 calendar quarters. Example, from quarter ending March 31, 2023 to quarter ending December 31, 2023. Further, it was observed that 6 of these FVCIs had never filed any quarterly reports, and 4 other FVCIs had filed as long back as FY 2012-13," SEBI said in the order. The firms had also not updated their status of ineligibility.
SEBI's order also read that it has put efforts into communicating with the said FVCIs and was unable to establish contact regarding the matter. The market watchdog also highlighted that the FVCis should be disclosing the stoppage of their activities in the country, including the firms not notifying SEBI of changes in address and failure to submit periodic reports.
Foreign investments have played a pivotal role in shaping the Indian startup industry with sectors like financial services, IT and technology continuing to evolve.SoftBank Group reported a USD 7.8 billion profit in a recent quarter, thanks to Indian IPOs such as Ola Electric and FirstCry.
Swiggy's upcoming IPO has also received significant interest from foreign funds such as the Norges Bank Investment Management, Fidelity International, and Capital Group, with bids exceeding USD 15 billion.
India continues to be an attractive destination for foreign investment, ranking as the world's eighth-largest recipient of FDI in 2023, according to a report by International law firm Whitecase.
