Description

Appellate Authority decision on RTI appeal regarding complaint filed against AIF India Asset Growth Fund II, concerning delayed disclosure of investee company payment status.

Summary

SEBI’s Appellate Authority issued a decision on Appeal No. 6611 of 2025 filed by Sarat Kumar Behura regarding his RTI application concerning a complaint against AIF India Asset Growth Fund II. The appellant sought information about the status and handling of his complaint filed through SCORES (SEBI Complaint Redress System). The respondent CPIO partially disclosed information while exempting certain details under Section 8(1)(h) of the RTI Act due to ongoing examination/investigation.

Key Points

  • Original RTI application dated September 26, 2025, sought eight categories of information about complaint against AIF India Asset Growth Fund II
  • CPIO responded on October 24, 2025, with partial disclosure and exemptions
  • Complaint was disposed in SCORES system, but matter is under examination for due diligence and disclosure norms compliance under AIF Regulations
  • Complaint alleged losses due to delayed/non-disclosure of payment status by investee companies
  • SEBI does not investigate matters related to returns/performance of schemes/funds
  • Two other investor complaints against the same AIF have been received on SCORES
  • Examination ongoing to determine if fund manager followed due diligence and disclosure requirements
  • Information about notings, documents, action taken details, and correspondence with AIF exempted under Section 8(1)(h) as matter is under examination/investigation

Regulatory Changes

No regulatory changes announced. This is an administrative decision on an RTI appeal.

Compliance Requirements

No new compliance requirements. The order relates to ongoing examination of whether AIF India Asset Growth Fund II complied with existing due diligence and disclosure norms under AIF Regulations.

Important Dates

  • September 26, 2025: RTI application filed by appellant
  • October 24, 2025: CPIO response to RTI application
  • November 07, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00291)
  • November 20, 2025: Appellate Authority order date

Impact Assessment

Limited impact - this is an individual RTI appeal decision with no market-wide implications. The order confirms that SEBI is examining whether AIF India Asset Growth Fund II followed proper due diligence and disclosure procedures regarding investee company payment information. The presence of two additional investor complaints suggests potential issues with the fund’s disclosure practices, but no enforcement action or regulatory findings have been announced. Investors in AIFs should note SEBI’s stance that it does not adjudicate complaints about investment returns/performance, but does examine compliance with disclosure and due diligence requirements.

Impact Justification

Administrative RTI appeal decision regarding an individual investor complaint against an AIF. Limited market-wide impact as it relates to specific complaint handling procedures and ongoing examination of one fund's disclosure practices.