Market regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of three alternative investment funds (AIFs)
DAR Mentorcap Film Fund ,
Arcus Opportunities Fund and
SEAF India Agribusiness Fund II for failing to submit mandatory quarterly activity reports (QARs) to the regulator. The cancellations were ordered under Section 12(3) of the SEBI Act, 1992, read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.
SEBI said DAR Mentorcap Film Fund failed to file QARs for the quarters ending March, June, September and December 2025. The reports must be submitted to SEBI within 15 calendar days of the end of each quarter via the SEBI Intermediary Portal (SI Portal).
Similarly, Arcus Opportunities Fund failed to file QARs for all four quarters ending in March, June, September and December 2025. SEAF India Agribusiness Fund II was also found to have failed to submit its QARs for the same four quarters.
Under Regulation 28 of the AIF Regulations, 2012, SEBI can call upon an AIF to file reports regarding its activities. The applicable master circular also required registered AIFs to submit quarterly activity reports in the prescribed format within 15 calendar days of the end of each quarter. Failure to submit periodic returns or reports is dealt with under the Intermediaries Regulations.
Following the reporting failures, SEBI initiated summary proceedings under Regulation 30A of the Intermediaries Regulations, read with Section 12(3) of the SEBI Act. Show-cause notices (SCN) were issued to these three funds in April 2026. However, attempts to serve the notices through registered post and email were unsuccessful. Notices sent by affixation at their last known addresses were also returned undelivered.
As a final measure of substituted service, SEBI published notices concerning the show-cause proceedings on 26 August 2026 in three newspapers. The funds were given 21 days from the date of publication to submit their replies and documentary evidence. No replies or submissions were received from any of the three noticees.
SEBI noted that Regulation 30A permits the competent authority to cancel or suspend an intermediary's certificate of registration, or pass any other appropriate order, when the noticee fails to make submissions within the prescribed timeline. The proceedings are summary in nature and do not provide for a personal hearing while disposing such proceedings.
After considering the material on record, SEBI concluded that the reporting violations had been established and that regulatory action was warranted. The regulator consequently cancelled the AIF registration of DAR Mentorcap Film Fund, Arcus Opportunities Fund and SEAF India Agribusiness Fund II.
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