Sebi Proposes SIM Binding and Biometric Authentication for Secure Trading

SEBI Cancels Registrations of 19 Inactive Foreign Venture Capital Investors

In a decisive move to ensure regulatory compliance and accountability, the Securities and Exchange Board of India (SEBI) has revoked the registration of 19 Foreign Venture Capital Investors (FVCIs). The order, issued on February 18, 2025, follows SEBI's findings that several of these entities had long ceased operations or failed to maintain basic reporting requirements.

Why SEBI Took Action

According to the regulator’s findings, many of these FVCIs were no longer operational from their registered overseas addresses, with some struck off company registries in Mauritius, Singapore, and Cyprus between 2013 and 2023.

SEBI’s inquiry revealed:

• Six FVCIs never submitted the required quarterly filings since registration.
• Four others last reported activity in FY13, marking over a decade of silence.

The list of cancelled entities includes some well-known investment names, such as:

• Axis Capital Mauritius
• Axis India Infrastructure Holdings
• Blackstone Capital Partners (Singapore) VI FVCI Pte. Ltd
• Blackstone Family Investment Partnership (Singapore) VI-ESC FVCI Pte. Ltd

Key Observations from SEBI’s Order

G. Ramar, Chief General Manager at SEBI, noted in the cancellation order that the entities had failed to demonstrate any ongoing venture capital activity. He remarked:

“The available material clearly shows that the Noticees are not interested in continuing as registered Foreign Venture Capital Investors.”

The order also flagged serious lapses in compliance, including the failure of several entities to notify SEBI of changes in regulatory status or inform the regulator after being dissolved in their home jurisdictions.

How Long Were These Entities Inactive?

SEBI’s records provided clarity for 14 of the 19 cancelled FVCIs, showing the timeline of their defunct status:

• 11 entities had been defunct for over five years
• 3 others were inactive for periods ranging from 10 months to 3 years

Why This Matters

The regulator’s decision reflects SEBI’s ongoing efforts to clean up the capital markets ecosystem, particularly among foreign-registered entities that fail to meet basic reporting obligations. The move also sends a clear signal to other FVCIs that registration is not a passive status—it comes with regulatory responsibilities.

By clearing out dormant registrations, SEBI aims to maintain integrity, transparency, and activity within India's foreign capital inflow frameworks—especially in the venture capital and alternative investment space