Emerging India Focus Funds Settles with SEBI over FPI Rule Violations

Emerging India Focus Funds settled a case of alleged FPI rule violations by paying Rs 64.35 lakh to SEBI. This involved non-compliance with 'fit and proper' criteria after their shareholder's license was revoked. The issue was unrelated to a Hindenburg Research report concerning the Adani Group.

Emerging India Focus Funds has resolved a dispute concerning alleged violations of Foreign Portfolio Investor rules with India's market regulator, SEBI, after paying a settlement charge of Rs 64.35 lakh.

According to a SEBI corrigendum, from October 2022 to April 2023, the entity was non-compliant with 'fit and proper' standards. This issue arose after its shareholder's license was revoked by Mauritian authorities. A formal complaint had been filed in February regarding these shortcomings, prompting the funds to seek settlement.

Emerging India Focus Funds clarified that this case does not relate to allegations made in the Hindenburg Research report about the Adani Group and has been settled independent of the 24 cases reported to the Supreme Court's expert committee.

(With inputs from agencies.)