Six entities pay Rs 4.14 crore to SEBI to resolve FPI rule violations

New Delhi, March 21 (PTI) Six entities, including US-based investment firm Acacia Partners and its affiliates, have settled cases related to the so-called FPI rules after payment ₹41,400 million settlement amount.

Under the SEBI Order, the Equivalent Partner, its branches and Conifer Management LLC have filed a Suo-Motu settlement application under the SEBI Order under the “conclusions that are not recognized and not deny, and legal conclusions.”

The order said the settlement resolved the case and no further litigation would be taken unless the settlement terms were violated.

“Any lawsuit under any violation as far as the settlement ordinance is concerned,” Sebi’s member Kamlesh C Varshney said in a March 20 order.

These entities allegedly violate various provisions of the SEBI FPI (Foreign Portfolio Investor) Rules and Prevent Money Laundering (Maintain Records) Specifications, 2005.

These violations mainly involve incorrect disclosure of beneficial ownership, delayed reporting of material information and violation of investment restrictions of listed companies.

The order said FPI did not disclose that Conifer Capital Management LLC and its principal individual Gregory Alexander exercised 100% control over its business.

It added that such misrepresentation persisted from October 2014 to August 2023, during which time FPI’s investment restrictions were not inserted as required by the norm.

After the disclosure, market regulators found that McDowell Holdings Limited’s joint FPI holdings violated the 10% ceiling applicable to a foreign investor group.

In accordance with SEBI’s FPI rules, a single foreign portfolio investor, including its investor group, purchases shares of each company by less than 10% of the company’s total paid equity.

The regulator launched an investigation after receiving an alert from NSDL in September 2023, which marked a 10% investment limit under the Acacia institutional partners, according to DEMAT HOUTHINGS as of September 28, 2023.

Acacia Partners LP, Acacia Institutional Partners LP, Acacia II Partners LP, Acacia Conservation Fund LP and Acacia Banyan Partners Paid ₹7.8 million each, ₹Conifer Management LLC paid 2.437 million.