SEBI Cancels EIF’s AIF Registration as Fund Fails to File Mandatory Quarterly Reports
The Securities and Exchange Board of India (SEBI) has cancelled the registration of EIF (ESG Impact Fund), citing persistent non-compliance in filing mandatory Quarterly Activity Reports (QARs). The decision, finalized on June 17, 2026, underscores SEBI's strict adherence to regulatory reporting requirements for Alternative Investment Funds (AIFs).The action stems from violations of the AIF Regulations, 2012, and related guidelines that mandate timely submission of activity reports. The fund had failed to file QARs covering several crucial quarters during 2025.
Mandatory Reporting Failures Leading to Enforcement Action
EIF (Registration No. IN/AIF1/17-18/0326) is a registered AIF under SEBI guidelines. Registered AIFs are required to file QARs through the SI Portal within 15 calendar days of each quarter's end, as per prevailing regulations and master circulars.The fund specifically missed filings for the quarters ending March-2025, June-2025, September-2025, and December 2025. Due to these sustained omissions, SEBI initiated Summary Proceedings under Regulation 30A of the Intermediaries Regulations, 2008, leading to the eventual cancellation order.
EIF’s Defense Against Non-Compliance Charges
EIF contended that the delays were attributable solely to persistent technical and system-related issues encountered while attempting to file reports via the SI Portal. The fund submitted detailed correspondence, including emails and screenshots, documenting repeated attempts to resolve these glitches with SEBI officials and the portal helpdesk dating back to 2023.While EIF acknowledged engaging in extensive communication regarding filing errors, SEBI’s review focused on diligence and fulfillment of regulatory duties. A key point raised by the fund was that since it had not commenced any operations or raised capital as an AIF, the filing of a PPM Audit Report might be inapplicable.
SEBI's Verdict: Diligence Over Technical Glitches
SEBI concluded that technical glitches, while noted, cannot serve as a valid justification for prolonged non-compliance. The regulatory authority found that the fund demonstrated a complete lack of diligence regarding mandatory submissions during 2025.The order highlighted that the Master Circular on AIFs does not carve out exceptions for funds that have not yet launched schemes. Therefore, even in the absence of business activity, EIF was obligated to file a timely ‘NIL’ report with SEBI.
Cancellation Order Takes Immediate Effect
In view of establishing violations of the relevant provisions of law, S MADHUSUDHANAN, Designated Authority at SEBI, passed the final order. The certificate of registration for EIF as an Alternative Investment Fund was hereby cancelled under Section 12(3) of the SEBI Act, 1992.The cancellation order comes into force immediately, marking a stringent regulatory move against systemic non-compliance within the AIF sector.
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