Advantedge Technology Fund, Manager and 3 KMP Pay ₹12.75 Lakh to Settle SEBI AIF Regulation Violation Case
Moneylife Digital Team 19 June 2026
Advantedge Technology Fund, its manager Advantedge Investment Advisors LLP and key managerial personnel (KMPs) Kunal Khattar, Ridhish Talwar and Nitin Garg have paid ₹12.75 lakh to settle proceedings initiated by the market regulator Securities and Exchange Board of India (SEBI). The settlement relates to alleged violations of alternative investment fund (AIF) regulations concerning sponsor and manager contribution requirements. 
 
According to the order, the matter arose from its examination of the quarterly activity report of the Advantedge Technology Fund Scheme III. The market regulator observed that the fund's manager and sponsor had not contributed to the scheme on a pro-rata basis alongside other investors during certain periods between January and July 2024 and again between August and December 2024. 
 
SEBI, prima facie, found that the fund had violated Regulation 10(d) of the SEBI (Alternative Investment Funds) Regulations, 2012, read with the provisions of the Master Circular for AIFs and the code of conduct applicable to AIFs. 
 
The regulator also observed that Advantedge Investment Advisors LLP, the manager of the fund, had allegedly breached provisions relating to compliance, governance and fiduciary responsibilities under the AIF Regulations and the code of conduct. 
 
Further, KMPs Mr Khattar, Mr Talwar, and Mr Garg were prima facie found to have violated provisions relating to the sponsor-manager contribution requirements and the code of conduct. 
 
In March 2026, SEBI issued summary settlement notices to the fund, the manager, and the KMPs, offering them an opportunity to settle the matter by remitting a settlement amount of ₹12.75 lakh, payable jointly and severally. 
 
The applicants subsequently filed settlement applications on 2 April 2026 and remitted the settlement amount on 1 April 2026. SEBI confirmed receipt of the funds. 
 
Following the payment and in exercise of its powers under the SEBI Act and Settlement Regulations, the regulator disposed of the proceedings without making any finding of fact or law against the applicants. 
 
SEBI clarified that the settlement order is subject to the applicants complying with the undertakings and representations made during the settlement process. The regulator retains the right to initiate appropriate action if any representation is later found to be untrue or if the settlement conditions are breached.
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