SEBI Revokes Registrations Of Five AIFs For Missing Mandatory Filings

Market regulator the Securities and Exchange Board (SEBI) has cancelled the registrations of five alternative investment funds (AIFs) after they repeatedly failed to submit mandatory quarterly reports.

The action applies to Exponential Innovation Fund, Florintree India Flexi Advantage Trust, Prime Realty Capital, Rudrabhishek Infrastructure Trust, and Victory Investment Fund. Separate orders were issued on Monday, and the cancellations took effect immediately.

SEBI said the funds did not file Quarterly Activity Reports (QARs) for the March, June, September and December 2025 quarters. These filings are mandatory for all registered AIFs and must be submitted within 15 days after the end of every quarter through the regulator’s intermediary portal.

Why Did SEBI Cancel Their Registrations?

According to the orders, the funds continued to miss filing deadlines despite clear reporting requirements. After noticing the repeated lapses, SEBI started summary proceedings under the Intermediaries Regulations and sent show-cause notices to the entities in April 2026.

The regulator said the violations were established and the entities had failed to follow disclosure norms expected from registered investment funds. Since the defaults continued across multiple quarters, SEBI decided to cancel their registrations under the existing rules.

The move reflects the regulator’s tougher stand on compliance failures in the alternative investment space.

What Are Quarterly Activity Reports?

AIFs send routine updates called Quarterly Activity Reports (QARs) straight to SEBI. These documents give regulators a clear window into the day-to-day workings of the sector, covering how funds move, where investors are exposed, and whether firms are playing by the rules.

SEBI uses these filings to keep a close eye on what's actually happening on the ground. If a fund skips a report, it blocks that oversight and raises instant questions about what they might be hiding.

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Why Does This Matter For The Industry?

The latest action is being viewed as a warning for other AIFs that may be falling behind on compliance requirements. Industry observers say the regulator is paying closer attention to reporting standards as the alternative investment market continues to expand.

India’s AIF industry has grown steadily in recent years, attracting money from wealthy individuals, family offices and institutions. With the sector becoming larger, regulators are also increasing scrutiny around governance and disclosures.

Sources:

NDTV Profit

The Hindu Business Line

SEBI

PMS AIF World