The Securities and Exchange Board of India (Sebi) has settled a probe into IndiGrid Investment Managers Ltd for alleged violation of infrastructure investment trust (InvIT) rules. The company has paid Rs 23.4 lakh towards settlement charges.
The case related to IndiGrid Investment Managers allegedly using funds mobilised through borrowings for purposes other than the acquisition or development of infrastructure projects.
After IndiGrid Investment Managers paid the settlement amount, Sebi, in a settlement order passed on Monday, said the "instant adjudication proceedings initiated against the noticee vide SCN (SCN) ...September 21, 2023 is disposed of".
The Securities and Exchange Board of India (Sebi) initiated adjudication proceedings against IndiGrid Investment Managers Ltd for the alleged violation of InvIT rules in the matter of India Grid Trust Ltd. Also, the regulator issued a show cause notice to IndiGrid Investment in September last year.
In its show cause notice, the regulator alleged that IndiGrid Investment Managers utilised funds raised through borrowings for purposes other than the acquisition or development of infrastructure projects in excess of 49 per cent.
Additionally, IndiGrid Investment Managers allegedly undertook valuation of assets which were acquired after signing of SPA/completion of acquisition of assets. Through such acts, IndiGrid Investment Managers allegedly violated the provisions of InvIT rule.