SEBI settles proceedings with True North for ₹10.87 lakh over 10-year delay in winding up a venture capital scheme, citing regulatory breaches.
SEBI Accepts ₹10.87 Lakh Settlement in True North VC Scheme Delay
The Securities and Exchange Board of India (SEBI) has accepted a settlement of ₹10.87 lakh from True North Capital Advisors in connection with a 10-year delay in winding up Venture Capital Scheme-B, which breached prescribed timelines under venture capital fund regulations.
The delay resulted in violations of SEBI’s framework governing the tenure and dissolution of alternative investment funds (AIFs). Although the scheme had completed its investment cycle, the fund manager failed to initiate timely winding-up, thereby prejudicing investor interests and regulatory compliance standards. SEBI concluded that the settlement amount appropriately reflects the gravity and duration of the non-compliance.
While the settlement does not amount to an admission of guilt, it signals SEBI’s continued emphasis on strict adherence to fund lifecycle obligations. Fund managers must ensure timely compliance with exit and dissolution mandates to avoid enforcement action, even where no direct investor harm is alleged.
