2 Edelweiss AIF Entities Pay Rs61.42 Lakh To Settle SEBI Adjudication Proceedings, Accept 12-month Ban on Concerned Officials
Moneylife Digital Team 01 October 2025
Edelweiss Stressed and Troubled Assets Revival Fund Trust (ESTAR) and Edelweiss Alternative Asset Advisors Ltd (EAAAL) have paid Rs61.42 lakh to settle adjudication proceedings initiated by market regulator Securities and Exchange Board of India (SEBI). 
 
The proceedings related to alleged violations of the regulatory framework governing alternative investment funds (AIFs), including lapses in investor protection, failure to mitigate conflicts of interest, and inaccurate disclosures.
 
The case originated from a show-cause notice (SCN) issued by SEBI in July 2024, which alleged that ESTAR failed to act in the interest of investors and did not exercise independent professional judgment. EAAAL was also charged with conducting AIF activities in a manner inconsistent with its private placement memorandum (PPM), neglecting measures to mitigate conflicts of interest, and providing incorrect information to trustees.
 
Both entities subsequently filed applications under the SEBI (Settlement Proceedings) Regulations, 2018. After multiple rounds of deliberations before SEBI’s internal committee and the high-powered advisory committee (HPAC), the terms of settlement were finalised in May 2025. In addition to the monetary payment, a non-monetary condition was imposed whereby the officers-in-default would be barred from associating with the company in any capacity for 12 months.
 
The settlement was approved by SEBI’s panel of whole-time members (WTM) on 18 August 2025, and the settlement amount was remitted by 29 August 2025. Following this, adjudication proceedings were formally disposed of under Section 15JB of the SEBI Act, 1992.
 
SEBI clarified that the settlement order does not prevent it from reopening or restoring proceedings if it later emerges that the applicants withheld disclosures, breached undertakings, or if discrepancies are detected in the settlement process.
 
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