SEBI Finalizes Settlement of Kshitij Venture Capital Fund Violation: Investment Manager Agrees to Pay ₹10.87 Lakhs

SEBI Finalizes Settlement of Kshitij Venture Capital Fund Violation: Investment Manager Agrees to Pay ₹10.87 Lakhs​

SEBI Closes Case on Kshitij Venture Capital Fund Scheme Winding-Up Delay​

The Securities and Exchange Board of India (SEBI) has issued a Summary Settlement Order concerning violations related to the winding up of the Kshitij Venture Capital Fund (VCF). The order addresses issues where Everstone Capital Advisors Private Limited, the Investment Manager, was found prima facie in violation of the VCF Regulations, 1996.

The settlement formalizes the resolution of enforcement proceedings initiated against the Applicant, as per SEBI's powers under Section 15JB and Section 19 of the Securities and Exchange Board of India Act, 1992. The settlement was executed after the Investment Manager remitted a specified sum to the regulator.

Violation Details and Fund Administration Timeline​

SEBI observed that the VCF had been operating for a scheme tenure starting on June 30, 2005. This initial term was extended once, with subsequent extension until June 30, 2014. The original winding-up deadline, mandated within three months of the previous extension, was missed significantly.

The regulator noted that the last asset of the scheme was liquidated in May 2018. Proceeds were distributed only after setting aside ₹3 crores for contingent liabilities and expenses. This timeline led SEBI to prima facie conclude a delay of four years and eight months in winding up the venture capital fund.

Settlement Process and Financial Resolution​

The regulatory action originated from a 'Notice of Summary Settlement' dated March 17, 2026. This notice informed Everstone Capital Advisors Private Limited (the Applicant) about the observed violations under the VCF Regulations. The settlement required the remittance of ₹10,87,500.

The Applicant responded by filing a settlement application on April 16, 2026. Subsequently, the full settlement amount of ₹10,87,500 was remitted by the Investment Manager on April 10, 2026. SEBI confirmed the credit of this settlement amount in its records.

Regulatory Ramifications of the Order​

The Summary Settlement Order stipulates that SEBI will not initiate any enforcement action against Everstone Capital Advisors Private Limited for the cited violations, provided all conditions are met. This provides closure to the proceedings referred to in the Notice.

However, the order clearly states that this settlement is without prejudice to SEBI's ongoing rights. Regulators reserve the right to initiate appropriate further action if SEBI finds any future discrepancies. These potential grounds include finding a representation made by the Applicant untrue during the settlements or breach of any undertaking filed.

The Settlement Order, which comes into force immediately, details that the specified proceedings are settled in respect of the Applicant. A copy of this order is required to be published on the SEBI website for public notification purposes.