Acacia Partners Settles FPI Rule Violation Case with Rs 4.14 Crore

Acacia Partners and affiliates have paid Rs 4.14 crore to settle a case with SEBI over alleged Foreign Portfolio Investment rules breaches. The settlement, which does not admit or deny fault, resolves issues such as incorrect ownership disclosures, reporting delays, and exceeded investment limits in McDowell Holdings.

In a significant development, US-based investment firm Acacia Partners, along with its affiliates, has resolved a case involving alleged violations of Foreign Portfolio Investor (FPI) rules. The entities agreed to a settlement amounting to Rs 4.14 crore, the Securities and Exchange Board of India (SEBI) announced.

The settlement does not involve any admission or denial of guilt by Acacia Partners or the associated entities. The charges primarily concerned misrepresentation of ownership details and delays in reporting critical information, as well as the overstepping of investment limits for McDowell Holdings Ltd.

SEBI's order remarked that no further action will be pursued against the parties unless they contravene the terms of the agreement. This settlement follows an NSDL alert that led to an investigation and highlighted that Acacia's institutional partners exceeded the permitted 10 per cent investment threshold.

(With inputs from agencies.)