Description

SEBI settles enforcement proceedings against 360 One Private Equity Fund for violating AIF investment regulations with ₹14.63 lakh penalty.

Summary

SEBI issued a summary settlement order against 360 One Private Equity Fund, its manager 360 One Alternates Asset Management Limited, and KMP Saksham Kohli for violating AIF regulations. The Fund accepted investments from AIFs while simultaneously investing in other AIFs, violating Regulation 15(1)(da) of AIF Regulations. The violations were settled with a penalty of ₹14,62,500 paid jointly and severally.

Key Points

  • 360 One Private Equity Fund violated AIF Regulations by accepting investments from AIFs while investing in other AIFs
  • The Scheme reported ₹54.19 crore investments in AIFs in Q1 2023 filing while having an AIF as investor
  • Non-compliance was subsequently corrected on October 30, 2024
  • Settlement amount of ₹14,62,500 was paid by all three applicants jointly and severally
  • SEBI will not initiate enforcement action for these specific violations

Regulatory Changes

No new regulatory changes introduced. The order reinforces existing AIF Regulation 15(1)(da) prohibiting AIFs from both accepting investments from and investing in other AIFs simultaneously.

Compliance Requirements

  • AIFs must ensure compliance with investment restrictions under Regulation 15(1)(da)
  • Fund managers and KMPs must adhere to Code of Conduct provisions
  • Proper reporting and disclosure of investment structures to avoid conflicts
  • Immediate rectification of non-compliance when identified

Important Dates

  • December 23, 2024: Notice of Summary Settlement issued
  • March 20, 2025: Supplementary Notice issued
  • October 30, 2024: Non-compliance corrected by the Fund
  • Settlement payment deadline: 30 days from Supplementary Notice date

Impact Assessment

Limited market impact as this is a specific settlement for past violations that have been corrected. However, it serves as an important precedent for AIF compliance and reinforces SEBI’s enforcement of investment restrictions. The settlement demonstrates SEBI’s willingness to resolve violations through summary settlement procedures when entities cooperate and rectify non-compliance.

Impact Justification

Settlement order for specific AIF violations, limited market-wide impact but important for AIF compliance precedent