To settle with Sebi, the Omnivore India Capital Trust and its advisor each paid ₹14.62 lakh. The issue is that their venture capital fund took almost eight months to complete, which didn't follow the rules set by the Venture Capital Fund and Alternative Investment Fund (AIF). According to the order given by Sebi, the fund's winding-up was completed on December 3, 2024.
Nevertheless, the process needed to be completed by April 15, 2024, following the regulations. This deadline happened because the loan had reached its maximum allowed time, and that officially concluded on January 16, 2024. This happened since liquidation often requires more time than the standard three months. Although Omnivore notified Sebi and its supporters on January 16, 2024, that the fund was managing a wind-down, it did not happen in the timeframe suggested by the law. Therefore, there were violations of important rules set by the AIF and Venture Capital Fund regulations.
The companies responded to this with a settlement application to Sebi. The company made efforts to settle the problem apart from accepting or denying the regulator's findings. Sebi examined the out-of-court settlement agreement and accepted the proposal of ₹14.62 lakh. After both parties involved agreed, Sebi decided to avoid filing a lawsuit. On June 5, 2025, the court made the decision official.
Because of the process, well-managed companies can solve compliance issues more rapidly if they meet the required standards. Registrations with Sebi for the fund were completed on June 1, 2011. The first close happened in April 2012, and the final close was in January 2014. Ultra's requirements to wind up its operations were due to the maximum time of the fund, which ended in January 2024 and was extended twice.
Sebi checks if AIF fund managers comply with the rules regarding investment lengths and how they should exit the fund. The regulator requires all funds to finish their operations within a certain time to help protect investors and support market order.
In the past few years, Sebi has put rules in place to ensure that venture capital funds and other alternative investment funds disclose required information and fulfil all obligations. While it would normally handle non-compliance by enforcing fines, the regulator used a financial settlement in this case since Omnivore agreed to settle and cooperated fully.