5 AIFs Registrations Cancelled by SEBI for Repeated Defaults in Reporting
Moneylife Digital Team 01 June 2026
Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of five alternative investment funds (AIFs)—Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust and Victory Investment Fund—for repeatedly failing to submit mandatory quarterly activity reports (QARs) and for not responding to show-cause notices issued by the market regulator.     
 
In five separate orders, SEBI found that all the funds had failed to file QARs for the quarters ended March 2025, June 2025, September 2025 and December 2025. Under the SEBI (Alternative Investment Funds) Regulations, 2012 and the SEBI Master Circular on AIFs, registered funds are required to submit quarterly reports on their activities within 15 days of the end of every quarter through SEBI's intermediary portal.     
 
According to the regulator, the persistent failure to file reports prompted it to initiate summary proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008. Show-cause notices were issued to the five entities in April 2026, asking them to explain why their registrations should not be cancelled. While the notices were delivered through registered post and email, none of the entities filed any reply or submitted supporting documents within the stipulated period.     
 
SEBI observed that the AIF Regulations specifically empower the regulator to take action against funds that fail to furnish periodic reports or returns. SEBI’s designated authority (DA), S Madhusudhanan, noted that the violations stood established and that the continued failure to comply with reporting requirements warranted cancellation of the funds' registrations.     
 
Consequently, SEBI cancelled the registration certificates of Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust and Victory Investment Fund with immediate effect.     
 
Last week, the market regulator cancelled registrations of three AIFs, Indostar Credit Fund, Indostar Recurring Return Credit Fund and Ventureland Asia Advisors Services LLP for similar violations.
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