K Raheja Investment Managers Settles REIT Violation Case with SEBI

K Raheja Investment Managers resolved a case with the capital markets regulator SEBI over alleged violations of REIT rules. They paid a settlement fee of Rs 68.73 lakh in relation to Mindspace Business Parks REIT. The proceedings were settled without admitting or denying any wrongdoing.

K Raheja Investment Managers, the management firm for Mindspace Business Parks REIT, has settled a case involving alleged breaches of REIT regulations with the Securities and Exchange Board of India (SEBI) by paying a settlement fee of Rs 68.73 lakh. The firm is responsible for managing one of India's major business parks listed entities.

SEBI had initiated adjudication proceedings against the investment firm for allegedly violating REIT guidelines. These violations pertained to inaccuracies in net distributable cash flow calculations and incomplete disclosure in financial reports. A show-cause notice was issued to the company on August 24, claiming misrepresentations at the Special Purpose Vehicle level and using borrowed funds for distributions.

The proceedings were resolved after K Raheja Investment Managers submitted a settlement application. The SEBI High Powered Advisory Committee (HPAC) approved the revised terms proposed by the firm, allowing the matter to conclude with the payment of the settlement fee.

(With inputs from agencies.)