Brookprop Management Services Pays Rs20.47 Lakh To Settle Case with SEBI in REIT NDFC-Brookfield Case
Moneylife Digital Team 02 September 2025
Brookprop Management Services Private Ltd, the manager of Brookfield India Real Estate Investment Trust (REIT) has settled case with the market regulator Securities and Exchange Board of India (SEBI), over alleged violations linked to the use of borrowed funds for distributions. The company has paid Rs20.47 lakh towards the settlement, which has been accepted by SEBI, effectively closing the case.
 
The proceedings had been initiated under Section 15HB of the SEBI Act, 1992, after it was observed that Brookprop Management Services had allegedly used borrowed funds to facilitate distribution of net distributable cash -flow (NDCF). SEBI had issued a show-cause notice (SCN) in June 2024, seeking an explanation from the company regarding these alleged violations.
 
Pending the adjudication, Brookprop Management Services filed a settlement application on 26 July 2024, without admitting or denying the findings.
 
After discussions with SEBI’s internal committee (IC) and submission of revised settlement terms, the high-powered advisory committee (HPAC) recommended approval of the settlement.
 
SEBI’s panel of whole time members (WTM) approved the recommendation on 18 August 2025, and Brookprop Management Services confirmed the remittance of the settlement amount on 1 September 2025.
 
In view of the payment, SEBI has disposed the adjudication proceedings under Section 15JB of the SEBI Act as per the SEBI Settlement Proceedings Regulations, 2018. The settlement order clarifies that SEBI retains the right to restore or initiate proceedings if any misrepresentation is discovered, settlement terms are breached, or discrepancies are found in the settlement process.
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