SEBI Settles AIF Norms Violation Case For ₹12.75 Lakh, Eight Innovate Fund And Officials Get Relief

Mumbai: The Securities and Exchange Board of India (SEBI) has settled a case involving alleged violations of Alternative Investment Funds (AIF) regulations by Eight Innovate Investment Trust I, its investment manager and two officials following a settlement payment of ₹12.75 lakh.

According to a settlement order issued on November 11, the proceedings concerned Eight Innovate Fund II, a scheme operated under Eight Innovate Investment Trust I. The settlement brings the regulatory proceedings against the applicants to a close without a full adjudication of the alleged violations.

What Triggered SEBI's Action?

The market regulator examined quarterly activity reports submitted by Eight Innovate Fund II covering the period from June 2024 to March 2025. During its examination, SEBI observed that Eight I Advisory LLP, which served as the fund's manager and sponsor, had allegedly failed to maintain the required proportional contribution to the fund.

The suspected discrepancies related specifically to the quarters ending June 2024 through December 2024. Based on these observations, the regulator identified prima facie non-compliance with provisions of the SEBI Alternative Investment Funds Regulations.

₹12.75 Lakh Settlement Payment

Following its examination, SEBI issued summary settlement notices in March to the fund, its investment manager and two associated officials. The regulator offered the applicants an opportunity to resolve the proposed enforcement proceedings through a combined settlement payment of ₹12.75 lakh.

The applicants subsequently submitted settlement applications and deposited the prescribed amount. The settlement liability was imposed jointly and severally, meaning the applicants were collectively responsible for fulfilling the payment obligation.

Who Was Involved?

The proceedings covered four applicants: Eight Innovate Investment Trust I, Eight I Advisory LLP, Vikram Chachra and Venkatramani Vishwanath. After confirming receipt of the settlement amount, SEBI disposed of the proceedings against all four applicants.

The order resolves the alleged regulatory breaches through SEBI's settlement mechanism rather than a contested determination of liability.

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