By Abhay Ray 
Introduction
Capital markets regulator Securities and Exchange Board of India (SEBI) cancelled the registration of 19 defunct FVCI (Foreign Venture Capital Investors) 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.
Reasons Behind Taking this Action
The Securities and Exchange Board of India (SEBI) has recently canceled the registrations of 19 foreign venture capital investors (FVCIs) for violating regulatory norms and operating as defunct entities. The move is aimed at maintaining transparency and accountability in India’s capital markets, ensuring that only compliant and active investors remain registered. These entities, originally registered with SEBI, have been found to be non-operational, with many failing to submit mandatory quarterly reports and notify SEBI about significant changes that could affect their registration status. The regulatory authority had attempted to contact these firms but received no response to the show-cause notices sent in December 2024. By taking this step, SEBI is reinforcing its commitment to strengthening the integrity of India’s investment ecosystem.
Prominent names like Blackstone Capital (Singapore) and Axis Capital (Mauritius) were found in the list. The companies had been defunct and had stopped being registered under their respective jurisdictions, the market watchdog found, Further, they had also stopped publishing their quarterly reports. “It was observed that the 19 FVCIs had also not submitted quarterly data on SEBI Intermediaries (“SI”) portal for even 4 calendar quarters. Example, from quarter ending March 31,2023 to quarter ending December 31, 2023. Further, it was observed that 6 of these FVCIs had never filed any quarterly reports, and 4 other FVCIs had filed as long back as FY 2012-13,” SEBI said in the order. The firms had also not updated their status of ineligibility.
List of Entities Affected by SEBI’s Registration Cancellation
SEBI’s inquiries with the registered custodians confirmed that none of the 19 companies held custody accounts or securities in India. Further investigation revealed that these companies were defunct in their parent jurisdictions, including Mauritius, Cyprus and Singapore, as verified through the respective business registration departments. Out of the 14 entities whose date of strike-off was available, 11 had been defunct for over five years, while the other three had been defunct for a period ranging from 10 months to three years.
The companies whose registration is cancelled include : AOC Partners APGF, Asia Power FVCI Ltd, AV 2014 Global Investment Ltd, Axis Capital Mauritius, Axis India Infrastructure Holdings, Blackstone Capital Partners (Singapore) VI FVCI Pte Ltd, and Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI Pte Ltd. Other entities are Canaan VII Mauritius, Ecolutions Singapore Pte Ltd (ESGP), Firstmark India Mauritius III Ltd, and Global Asia Venture Company (Mauritius). Additionally, HS Venture Ltd, IFCI Sycamore India Infrastructure Fund, Omega FVCI Investments PTE Ltd, P6 Asia Holdings Investments (Cyprus) Ltd, Pequot India Mauritius IV Ltd, Sandler Mauritius Investments Ltd, Structured Investments Ltd, and Summit Partners India Venture Capital Investments are also named in the SEBI order.
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.”
SEBI’s Commitment to Upholding Capital Market Transparency
SEBI’s recent action to cancel the registration foreign venture capital investors demonstrates its unwavering commitment to ensuring transparency and integrity within India’s capital markets. By targeting defunct entities that failed to comply with essential regulatory requirements, SEBI is reinforcing its role as a protector of market fairness. The cancellation of registrations highlights the importance of maintaining strict compliance with market regulations, such as the submission of quarterly reports and notifications of significant operational changes. SEBI’s actions reflect its ongoing efforts to create a level playing field, ensuring that only active, responsible investors contribute to the Indian financial ecosystem. This move also reassures both domestic and international investors that SEBI is actively monitoring market participants, protecting their interests, and fostering an environment of trust and transparency in India’s evolving capital markets.
Conclusion
SEBI’s cancellation of the registration of 19 foreign venture capital investors marks a significant step in its ongoing efforts to maintain the integrity and transparency of India’s capital markets. By addressing regulatory violations and non-compliance, SEBI is ensuring that only active and responsible investors operate within the market. This action underscores the importance of adherence to legal and operational requirements for firms seeking to engage in India’s financial ecosystem. Through such measures, SEBI continues to protect investor interests, reinforce market trust, and promote a transparent, accountable investment environment.
GMICapitals.com RaysVeda.com GetMyStartup.com LawCanal.com GetMyIndia.com ZinCob.com Angeltors.com