ICICI Prudential Entities Settle SEBI Case for ₹14.35 Lakh over Delayed Winding-up of Venture Capital Fund
Moneylife Digital Team 21 April 2026
ICICI Prudential entities have settled enforcement proceedings initiated by the market regulator Securities and Exchange Board of India (SEBI) after paying ₹14.35 lakh in connection with regulatory violations related to delays in winding up a venture capital scheme.
 
The settlement order, dated 16 April 2026, pertains to alleged violations of provisions under the SEBI Venture Capital Funds Regulations, 1996. ICICI Prudential Venture Capital Fund, ICICI Prudential Asset Management Company Ltd and ICICI Prudential Trust Ltd opted to settle the matter “without admitting or denying” the findings of fact and conclusions of law, in accordance with SEBI’s settlement regulations.
 
The case relates to ICICI Prudential Venture Capital Fund – Real Estate Scheme-I which was originally launched with a tenure of four years starting September 2013, along with provisions for extensions. While the scheme’s tenure was extended multiple times, it ultimately expired on 25 September 2023.
 
However, the winding-up process and distribution of proceeds to investors were completed only by 25 December 2023. SEBI observed that this resulted in an approximate delay of four years in completing the liquidation process and returning funds to contributors.
 
Following the submission of settlement applications, SEBI’s internal committee(IC) held discussions with representatives of the entities in December 2025. Based on these deliberations, an indicative settlement amount of ₹14.35 lakh was determined in accordance with the applicable norms.
 
The entities subsequently agreed to the proposed amount and filed revised settlement terms in January 2026. The high powered advisory committee (HPAC) reviewed the proposal and recommended settlement on the same terms which was later approved by SEBI panel of whole-time members (WTM) in March 2026.
 
SEBI confirmed that the settlement amount has been duly remitted. As part of the settlement, the regulator will not initiate enforcement action for the specified violations.
 
However, the regulator clarified that the order remains subject to standard conditions, including the right to reopen proceedings if any representations are found to be untrue, if there is a breach of undertakings, or if discrepancies arise in the settlement terms.
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