Nexus Select Mall Management Pays ₹24.37 Lakh To Settle SEBI Case over REIT Compliance Lapses

Moneylife Digital Team 04 March 2026

Investor Interest

Nexus Select Mall Management Pvt Ltd has settled adjudication proceedings initiated by the market regulator, Securities and Exchange Board of India (SEBI), by paying ₹24.37 lakh, bringing to a close allegations of non-compliance with the provisions of the SEBI (Real Estate Investment Trusts) Regulations, 2014.

SEBI had initiated adjudication proceedings under Section 15-I of the SEBI Act, 1992, for alleged violations of Regulation 7(b) read with Regulation 4, and Regulation 7(c) read with Regulation 4(2)(e) of the REIT Regulations. The regulator appointed an adjudicating officer on 23 May 2025 to inquire into and adjudge the matter under Section 15HB of the SEBI Act, which deals with penalties for contraventions where no separate penalty is prescribed.

A show-cause notice (SCN) dated 11 June 2025 was issued to Nexus Select Mall Management under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995. The notice called upon the company to explain why an inquiry should not be conducted and why a penalty should not be imposed for the alleged violations.

According to SEBI, Nexus Select Mall Management failed to maintain the required net worth as mandated under the REIT Regulations and did not inform the regulator about a material change in its net worth. These lapses were treated as violations of Regulation 7(b) read with Regulation 4, and Regulation 7(c) read with Regulation 4(2)(e) of the REIT framework.

While the adjudication proceedings were pending, Nexus Select Mall Management opted to resolve the matter through the settlement mechanism without admitting or denying the findings.

The company's representatives attended meetings with SEBI’s internal committee (IC) on 14 August 2025 and 14 October 2025. Thereafter, it submitted revised settlement terms on 17 October 2025. The high-powered advisory committee (HPAC), in its meeting held on 19 December 2025, recommended that the case be settled upon payment of ₹24.37 lakh as the settlement amount.

The recommendation was approved by SEBI’s panel of whole-time members (WTM) on 3 February 2026 and communicated to Nexus Select Mall Management the following day. The settlement amount was paid on 12 February 2026, and SEBI confirmed receipt.

In view of the acceptance of the settlement terms and payment of the amount, SEBI disposed of the adjudication proceedings initiated through the SCN dated 11 June 2025. The closure was effected under Section 15JB of the SEBI Act read with Regulation 23(1) of the Settlement Regulations.

However, the order clarifies that it is without prejudice to SEBI right to initiate or restore enforcement action in terms of Regulation 28 of the Settlement Regulations if it subsequently finds that the applicant failed to make full and true disclosure or violated any undertakings or waivers given as part of the settlement process.

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