 "IndiGrid Investment Managers settles InvIT rule violation case with Sebi")
IndiGrid Investment Managers Ltd has settled a probe by markets regulator Sebi in a case pertaining to the alleged violation of infrastructure investment trust (InvIT) rules after paying Rs 23.4 lakh towards settlement charges.
The case related to IndiGrid Investment Managers allegedly using funds mobilised through borrowings for purposes other than the acquisition or development of infrastructure projects.
The order came after IndiGrid Investment Managers filed a settlement application with Sebi proposing to settle the instant proceedings initiated against it "without admitting or denying the findings of facts and conclusions of law" through a settlement order.
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After IndiGrid Investment Managers paid the settlement amount, Sebi, in a settlement order passed on Monday, said the "instant adjudication proceedings initiated against the noticee vide SCN (SCN) ...September 21, 2023 is disposed of".
The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against IndiGrid Investment Managers Ltd for the alleged violation of InvIT rules in the matter of India Grid Trust Ltd. Also, the regulator issued a show cause notice to IndiGrid Investment in September last year.
In its show cause notice, the regulator alleged that IndiGrid Investment Managers utilised funds raised through borrowings for purposes other than the acquisition or development of infrastructure projects in excess of 49 per cent.
Additionally, IndiGrid Investment Managers allegedly undertook valuation of assets which were acquired after signing of SPA/completion of acquisition of assets. Through such acts, IndiGrid Investment Managers allegedly violated the provisions of InvIT rule.
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