The Securities and Exchange Board of India (SEBI) has cancelled the registration of 19 Foreign Venture Capital Investors (FVCIs) after they failed to meet the eligibility criteria.
The 19 entities include Axis Capital Mauritius, Axis India Infrastructure Holdings, Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd, P6 Asia Holding Investments (Cyprus) Ltd, Pequot India Mauritius IV Ltd, and Omega FVCI Investments Pte Ltd.
In its order dated 18 February, SEBI noted that these defunct FVCI companies are no longer in existence as incorporated entities in their respective jurisdictions and, as a result, no longer satisfy the condition of being an entity incorporated outside India, as stipulated in the FVCI regulations.
The markets regulator found that these entities were not operating from their registered addresses and had all become defunct between 2013 and 2023 in their respective jurisdictions, including Mauritius, Singapore, and Cyprus. In addition, six of them never filed any quarterly reports, and four had filed these reports as far back as FY13.
"During the examination, SEBI also observed from the website of the Business Registration Department of Mauritius, Cyprus, and Singapore that the status of these 19 FVCIs in their parent jurisdictions was defunct," the order stated.
SEBI's Chief General Manager G. Ramar said, "From the material available on record, I note that the Noticees were not carrying out any FVCI activities and also hardly submitted the relevant reports since being registered with SEBI. These facts clearly indicate that the Noticees are not interested in continuing as registered Foreign Venture Capital Investors."
The order further stated that the FVCIs did not inform the regulator about their change in regulatory status when they became defunct in their home jurisdictions.
SEBI also observed that, out of the 14 entities whose date of strike-off is available, 11 entities had been defunct for more than five years in their home jurisdictions, while three others had been defunct for a period of 10 months to three years.
