SEBI Cancels Registrations Of 3 AIFs For Failure To File Mandatory Quarterly Reports

The Securities and Exchange Board of India (SEBI) on Friday cancelled the registrations of three Alternative Investment Funds (AIFs), Ventureland Asia Advisors Services LLP, Indostar Credit Fund, and Indostar Recurring Return Credit Fund, for failing to file mandatory Quarterly Activity Reports (QARs) through the prescribed SEBI Intermediary Portal.

SEBI's Designated Authority S. Madhusudhanan noted that all registered AIFs are required under the AIF Regulations, 2012 and the SEBI Master Circular dated May 7, 2024 to submit quarterly reports within 15 days from the end of each quarter through the designated SI Portal. However, the three entities failed to file QARs for multiple quarters in 2025, prompting SEBI to initiate summary proceedings under Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.

In their replies, the entities attributed the lapses to administrative and technical issues, pending surrender applications, and the absence of investment activity.

Ventureland claimed that reports had been emailed to SEBI and sought assistance for portal filings, while the Indostar funds stated that they had remained inactive and that any reports would have reflected “NIL” activity.

Rejecting the explanations, SEBI held that filing through the SI Portal is a mandatory statutory requirement and that emailing reports cannot substitute compliance.

In the Ventureland order, SEBI observed:

“It is a settled principle of law that when a statute requires a thing to be done in a particular manner, it must be done in that manner alone.”

The regulator further observed that even funds with no business activity are required to submit “NIL” reports within the prescribed timelines and that subsequent attempts to rectify defaults do not cure past violations.

Holding that the reporting violations stood established, SEBI cancelled the registration certificates of all three AIFs with immediate effect.

Click here to read/download Ventureland Asia Advisors Services LLP order

Click here to read/download Indostar Credit Fund order

Click here to read/download Indostar Recurring Return Credit Fund order