Asirvad Micro Finance SEBI Penalty for NCD Violations

SEBI imposed a ₹1 lakh penalty on Asirvad Micro Finance for violating private placement norms by issuing NCDs that became a deemed public issue.
The company's ₹50 crore NCD issuance to Karvy Capital was downsold to 739 investors before listing, circumventing public issue regulations.
Asirvad failed to comply with Companies Act 2013 and SEBI ILDS Regulations, including not filing a prospectus or creating DRR.
The order noted the violation arose from a suo moto disclosure in the company's DRHP and that the NCDs were subsequently prepaid.