Authority: Securities and Exchange Board of India (SEBI)
Order Date: June 18, 2026
Case Overview
The Securities and Exchange Board of India (SEBI) issued a settlement order in respect of Everstone Capital Advisors Private Limited, the Investment Manager of Kshitij Venture Capital Fund. SEBI prima facie observed that the Investment Manager violated regulation 23(1)(a) read with regulation 24(2) of the SEBI (Venture Capital Funds) Regulations, 1996.
The violation concerned the delayed winding up of a scheme of the Venture Capital Fund. The scheme had a tenure of 7 years from June 30, 2005 to June 30, 2012, extendable by one year. The term was properly extended for one year until June 30, 2013. However, instead of winding up the scheme within the required 3 months (by September 30, 2013), the scheme was further extended for another year until June 30, 2014. The last asset of the scheme was ultimately liquidated in May 2018, and proceeds were distributed after setting aside ₹3 crores for meeting liabilities, contingencies, and expenses. This resulted in a winding up delay of 4 years and 8 months (from September 2013 to May 2018). The final distribution to investors was made on February 23, 2024, following the settlement of tax litigations pertaining to a tax-related demand notice in the Bombay High Court.
SEBI issued a 'Notice of Summary Settlement' dated March 17, 2026 to the Applicant, intimating it of the violations and offering to settle the enforcement proceedings for a settlement amount of ₹10,87,500 (Rupees Ten Lakh Eighty Seven Thousand and Five hundred). The Applicant filed a settlement application on April 16, 2026 and remitted the full settlement amount on April 10, 2026.
Final Outcome
In exercise of powers under Section 15JB read with Section 19 of the SEBI Act, 1992 and regulation 23 of the SEBI (Settlement Proceedings) Regulations, 2018, SEBI settled the specified proceedings. SEBI shall not initiate any enforcement action against Everstone Capital Advisors Private Limited for the cited violations. This settlement is without prejudice to SEBI's right to initiate appropriate action under regulations 28 and 31 of the Settlement Regulations if any representation made by the Applicant is found to be untrue, if the Applicant breaches any undertakings/waivers, or if the Applicant fails to pay any difference due to discrepancies in settlement terms. The order came into force immediately upon issuance.
Topics: SEBI Settlement, Venture Capital Regulation, Compliance Violation