The proceedings arose from alleged violations of the SEBI (Foreign Portfolio Investors) Regulations, 2019 and applicable SEBI circulars.
SEBI alleged that DMI Income Fund failed to inform SEBI or the designated depository participant (DDP) within the prescribed time about the addition of Class K Series 3, a new share class.
Under the applicable requirements, the Fund was required to intimate SEBI or its DDP within seven working days of the addition of the new share class.
However, DMI Income Fund began investing in India through Class K Series 3 from 24 August 2021, but informed its DDP only through a letter dated 31 July 2024, which was received on 19 August 2024. This resulted in a delay of nearly three years.
SEBI alleged that the delay violated Regulation 22(1)(c) of the FPI Regulations, 2019, read with Clause 14(i) of the Master Circular for Foreign Portfolio Investors (FPIs), Designated Depository Participants (DDPs) and Eligible Foreign Investors dated 30 May 2024.
The regulator also alleged that DMI Income Fund made additional investments worth ₹204.98 crore through Class K Series 3 between 24 August 2021 and 19 August 2024 without providing the beneficial owner (BO) details of the share class before making the investments in India.
According to SEBI, this violated Clause 12 of Part A of the Master Circular for FPIs, DDPs, and Eligible Foreign Investors dated 30 May 2024.
SEBI issued a show-cause notice (SCN) to DMI Income Fund on 15 October 2025, asking it to explain why adjudication proceedings should not be initiated and why a penalty should not be imposed for the alleged violations.
Instead, the fund opted for settlement and filed an application with SEBI on 1 December 2025. Following a meeting with SEBI's internal committee (IC) on 11 June 2026, DMI Income Fund submitted revised settlement terms on 15 June 2026, proposing to settle the matter for ₹27.63 lakh.
The proposal was subsequently considered by SEBI's high-powered advisory committee (HPAC) on 29 June 2026. The committee recommended a settlement subject to the payment of ₹27.63 lakh.
SEBI's whole-time members (WTMs) approved the recommendation on 12 August 2026. DMI Income Fund informed SEBI on 19 August 2026 that it had remitted the settlement amount, and the regulator confirmed receipt.
The settlement brings the proceedings against DMI Income Fund to a close, subject to the terms of the settlement order.
SEBI, however, clarified that the order does not prevent it from taking enforcement action if it subsequently finds that DMI Income Fund failed to make full and true disclosures, breached any undertakings or waivers given as part of the settlement, or if any discrepancy is found in the process of arriving at the settlement terms.
SEBI Slaps ₹7 Lakh Penalty on Jainam Broking over Client-to-own Fund Transfers, Multiple Compliance Lapses
Moneylife Digital Team
02 September 2026
Market regulator Securities and Exchange Board of India (SEBI) has imposed a ₹7 lakh penalty on Jainam Broking Ltd for multiple compliance lapses, indulging in transfer of funds between client banks and own banks (transferring...
RBI Imposes ₹2.23 Lakh Penalty on 2 Cooperative Banks from Maharashtra
Moneylife Digital Team
01 September 2026
Reserve Bank of India (RBI) has imposed a total penalty of ₹2.23 lakh on two cooperative banks from Maharashtra for non-compliance with its regulatory directions. The highest penalty of ₹2.03 lakh has been imposed on Maharashtra...
Only 19.5% Whole Wheat, but 52% Maida in McVitie’s Marie: CCPA Slaps ₹1 Lakh Fine on United Biscuits
Moneylife Digital Team
31 August 2026
The central consumer protection authority (CCPA) has imposed a ₹1 lakh penalty on United Biscuits Pvt Ltd, formerly known as Pladis India Pvt Ltd, for allegedly misleading consumers by marketing McVitie’s Whole Wheat Marie Biscuits...
SEBI Bars Trafiksol ITS Technologies, Promoters for One Year, Imposes ₹1.05 Crore Penalty Over IPO Disclosures
Moneylife Digital Team
31 August 2026
Market regulator Securities and Exchange Board of India (SEBI) has barred Trafiksol ITS Technologies Ltd, its chairman and managing director (MD) Jitendra Narayan Das and whole-time director Poonam Das from accessing the securities...
