SEBI Finalizes Settlement in Advantedge Technology Fund Misconduct Case: Compliance Breach Resolved After Payment

SEBI Finalizes Settlement in Advantedge Technology Fund Misconduct Case: Compliance Breach Resolved After Payment​

Regulatory Action Against Advantedge Technology Fund Concludes​

The Securities and Exchange Board of India (SEBI) has issued a Summary Settlement Order concerning violations found within the Advantedge Technology Fund Scheme III. The settlement addresses issues related to contribution discrepancies involving Advantedge Investment Advisors LLP, the Sponsor, and select Key Managerial Personnel associated with the fund.

The order confirms that SEBI will not initiate further enforcement action against the named Applicants for the specific violations detailed in the proceedings initiated under Section 15JB of the Act, 1992. This resolution comes after all parties remitted the required settlement amount to the regulator.

Core Allegations and Regulatory Violations​

SEBI's examination of the Quarterly Activity Report highlighted serious lapses in compliance within the Advantedge Technology Fund (the 'Fund'). Specifically, it was observed that the Manager and the Sponsor failed to contribute pro-rata amounts as mandated for certain periods.

The specified violations pertain to Regulation 10(d) of the Alternative Investment Funds Regulations, 2012 ('AIF Regulations'). The lack of contribution compliance was found in relation to both the period January 30, 2024 to July 02, 2024 and August 16, 2024 to December 17, 2024.

Personnel Involved in Violations​

The misconduct found primarily involved Advantedge Investment Advisors LLP as the Manager of the Fund. Regulatory findings stated that the Manager was in violation of multiple provisions under Regulation 10(d) and Regulation 20(1) of the AIF Regulations, along with relevant clauses of the Code of Conduct.

Additionally, three Key Managerial Personnel were identified: Kunal Khattar, Ridhish Talwar, and Nitin Garg. These individuals were prima facie found to be in violation of Regulation 20(1) read with Regulation 10(d) of the AIF Regulations.

Settlement Terms and Compliance Confirmation​

SEBI had previously issued Notices of Summary Settlement dated March 04, 2026, intimating the Applicants—including the Fund, Manager, and Key Managerial Personnel—of these violations. These notices offered a pathway to settle the enforcement proceedings upon payment of a fixed sum.

The regulatory requirements mandated that the Applicants remit a settlement amount of ₹12,75,000/- (Rupees Twelve Lakh Seventy-Five Thousand only). The Applicants filed their settlement application and successfully remitted the entire specified amount on April 01, 2026. SEBI has since confirmed the credit of this payment.

Scope and Caveats of the Settlement Order​

The Settlement Order, which came into immediate effect, confirms that SEBI will cease any enforcement action regarding these specific violations. This decision was made in terms of Regulation 23 of the Settlement Regulations after reviewing the facts presented by the parties.

However, the order includes a critical caveat. Passing this settlement is without prejudice to SEBI’s rights under regulations 28 and 31 of the Settlement Regulations. These rights apply should SEBI subsequently find that any representation made by the Applicants in the settlement proceedings was untrue.

Further actions remain possible if the Applicants breach any clauses or conditions of undertakings filed during the settlement, or if they fail to pay any difference due to discrepancies identified while arriving at the settlement terms.