Wilmington Trust Settles SEBI Case, Pays Rs 64.35 Lakh Over FPI Violation

Wilmington Trust Collective Investment Trust on Thursday settled a case with capital markets regulator Securities And Exchange Board Of India related to an alleged violation of foreign portfolio investors' rules by paying a settlement amount of Rs 64.35 lakh.

The settlement order came after the applicant (Wilmington Trust Collective Investment Trust - Lazard/Wilmington ACW Ex-US Equity Advantage Fund) proposed to settle the instant proceedings initiated against it without "admitting or denying the findings of facts and conclusions of law".

"In view of the acceptance of the settlement terms, the instant adjudication proceedings initiated against Wilmington Trust Collective Investment Trust - Lazard/Wilmington ACW Ex-US Equity Advantage Fund is disposed of in terms of the settlement regulations on the basis of the settlement terms," Sebi's adjudicating officer Barnali Mukherjee said in the order.

SEBI of India conducted an examination in the matter of delay in intimation of regulatory status by Wilmington Trust Collective Investment Trust (noticee/applicant) to check compliance with provisions of SEBI's Foreign Portfolio Investors regulations.

The examination period was from April 28, 2023, to July 11, 2023.

During the examination, the regulator observed that the applicant had not intimated the change in the regulatory status, category and sub-category of the FPI, within seven working days to SEBI or Designated Depository Participant.

Further, SEBI also found that Wilmington Trust Collective Investment Trust made fresh purchases before the completion of additional know your customer requirements without holding a valid registration certificate.

Pursuant to the observations, the markets watchdog initiated adjudication proceedings against the applicant for the alleged violation of FPI norms.

Thereafter, a show cause notice was issued by the regulator on April 23, 2024, to Wilmington Trust Collective Investment Trust for the alleged violations.

Wilmington Trust Collective Investment Trust applied to settle the proceedings that may be initiated against it for allegedly contravening the foreign portfolio investors' rules.

Pursuant to the receipt of the settlement application, the applicant filed revised settlement terms, wherein it will pay Rs 64.35 lakh as the settlement amount.

The revised terms proposed by the applicant were approved by the Sebi's High Powered Advisory Committee, which recommended the matter be settled.

After remitting the settlement fee of Rs 64.35 lakh, Wilmington Trust Collective Investment Trust settled the case with SEBI.