K Raheja Investment Managers Has Agreed to Pay Rs 68.73 Lakh to Resolve Accusations of Breaching SEBI Regulations

K Raheja Corp Group owns office properties in Mumbai, Pune, Hyderabad, and Chennai. The Securities and Exchange Board of India (Sebi) has initiated adjudication actions against K Raheja Investment Managers LLP for allegedly breaching REIT regulations. On August 24, 2023, a show-cause notice was sent to them, pointing out supposed inaccuracies in the calculation of net distributable cash flows (NDCF) at the Special Purpose Vehicle (SPV) level.

K Raheja Investment Managers Resolved Case with SEBI

K Raheja Investment Managers has settled a case with the Securities and Exchange Board of India (SEBI) by agreeing to pay a settlement fee of Rs 68.73 lakh. The case pertained to alleged violations of REIT regulations related to Mindspace Business Parks REIT. The firm, which is now referred to as K Raheja Corp Investment Managers Pvt Ltd, manages the Mindspace Business Parks REIT that was listed on Indian stock exchanges in August 2020.

K Raheja Investment Managers Notice

The notice also accused K Raheja Investment Managers of providing inaccurate and incomplete NDCF disclosures in their semiannual and annual reports. Additionally, it was claimed that, despite having negative cash balances at the SPV level, NDCF distributions to the REIT were funded through borrowing, and these funds were subsequently distributed to unit holders. The company has suggested resolving these proceedings without admitting to or denying any of the findings.

After K Raheja Investment Managers submitted their settlement application, Sebi’s High Powered Advisory Committee (HPAC) gave the green light to the revised settlement terms. Subsequently, the company paid the settlement fee to resolve the issue with Sebi. Asha Shetty, the adjudicating officer for Sebi, confirmed that the proceedings that began on August 24, 2023, were finalized in accordance with the settlement terms.

Case Settlement 

During its meeting on September 30, 2024, the High Powered Advisory Committee reviewed the proposed settlement terms and recommended that the case be resolved with a payment of Rs. 68,73,750 (Rupees Sixty-Eight Lakh Seventy-Three Thousand Seven Hundred and Fifty Only) by the REIT manager.

On November 12, 2024, the Panel of Whole-Time Members of SEBI approved the HPAC’s recommendation, which was subsequently communicated to the REIT manager on November 14, 2024.

Aiming to improve your trading experience? Enjoy seamless stock trading at your fingertips by downloading the Angel One trading app now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.