Sebi bars Vistaar Capital for a year, orders winding up of Film Fund

Scheme was to expire in 2013 but was not liquidated and failed to maintain records: Regulator

The Securities and Exchange Board of India (Sebi) on Monday barred alternative investment manager Vistaar Capital Advisors for one year and directed it to wind up a scheme within six months for alleged regulatory violations.

The markets regulator observed that the Vistaar Religare Media Fund, also referred as ‘Film Fund’, was to expire in 2013 but has not been liquidated. The fund failed to maintain records including details of the investments, quarterly returns, reports on its activity and exits.

The fund, a joint-venture with Religare Enterprises, intended to raise Rs 200 crore for financing movies but could only manage an initial sum of Rs 42 crore

Some of the investors in the fund included Bennett, Coleman & Co and Religare Finvest. As per Sebi's order, the valuation of the assets of the fund has fallen to just Rs 38 lakh.

Sebi has directed the fund to provide exit to the investors within six months by in-specie distribution of shares or stake in the investee company. If the unit holders choose not to exercise this option then it will be based on two separate valuations.

The net asset value of the fund will be determined on the basis of these two valuations or Rs 40 lakh, whichever is higher.

In the order, Sebi whole time member Ananta Barua barred the investment manager from taking up any new assignment along with restraining it from accessing the securities market for a year.

The market watchdog has also restrained seven individuals, including present and former members of the board of directors, from associating with any Sebi registered intermediaries like mutual funds and AIFs for varying periods.