New Delhi, Two entities have settled with markets regulator Sebi for alleged violations of AIF rules in the matter of Clean Max Renewable Trust after collectively paying over Rs 17 lakh towards the settlement amount. The order came after Clean Max Energy Ventures and Clean Max Enviro Energy Solutions filed a joint suo motu settlement application proposing to settle the case by “neither admitting nor denying any conclusions of law”, according to the Sebi order.
“It is hereby ordered that any proceedings that may be initiated for the violations as are settled in respect of the applicants (Clean Max Energy Ventures and Clean Max Enviro Energy Solutions),” Sebi’s whole-time members Amarjeet Singh and Ashwani Bhatia said in the order passed on Monday.
Clean Max Renewable Trust is a Sebi-registered Category II Alternative Investment Fund (AIF) and the sponsor of the AIF is Clean Max Enviro Energy Solutions, while Clean Max Energy Ventures is the investment manager.
In August, 2021, Clean Max Enviro Energy Solutions entered into an agreement as part of which Augment India I Holdings, LLC acquired around 60 per cent of its issued and paid up share capital.
After the transaction, there was a change in control of sponsor and also indirect change in control of the investment manager, which is a wholly owned subsidiary of the Clean Max Enviro Energy Solutions.
As per the norms, in case of change in control of sponsor/investment manager of AIF, consent of 75 per cent of its unit holders need to be obtained or the dissenting unit holders provided an exit.
The unit holders shall be provided not less than one month for expressing their dissent. In this regard, the AIF has submitted that it has obtained consent of all contributors.
However, the contributors’ consent was sought only on October 27, 2021, with a delay of 68 days.
Accordingly, the applicants filed the settlement application to settle the proceedings that may be initiated against them for delayed compliances, which recommended them to settle the matter on payment of Rs 17.40 lakh.
Consequently, the applicants paid the amount and settled the case.
In another order passed on December 8, Balaxi Overseas settled the case with Sebi for alleged violation of SAST (Substantial Acquisition of Shares and Takeovers) rules in the matter of Anandam Rubber Company Ltd by paying Rs 8.40 lakh as settlement charges.
