Singularity AMC pays over Rs 40 lakh to settle AIF rule violation case with Sebi

Mumbai-based Singularity AMC has settled two cases with the capital market regulator Sebi over alleged violations of alternative investment fund norms by paying Rs 40.5 lakh in settlement charges .

In two separate settlement orders passed on Friday, Sebi said Singularity AMC LLP paid Rs 9.37 lakh to settle a case involving Singularity Equity Fund and Rs 31.12 lakh for alleged violations involving three schemes of Singularity Growth Opportunities Fund.

In the first case, the regulator found that the manager or sponsor failed to maintain the prescribed continuing interest in Singularity Equity Fund for the quarters from September 2023 to June 2024.

Singularity Equity Fund is a Sebi-registered Category III Alternative Investment Fund (AIF), of which the applicant (Singularity AMC) is the manager. The AIFs are required to maintain a continuing interest of at least 5 per cent of the corpus or Rs 10 crore, whichever is lower.

In the second case, Sebi observed that the manager's drawdowns were not proportionate to those made from other investors in three schemes -- Singularity Growth Opportunities Fund II, Singularity Early Opportunities Fund and Founders Collective Fund.

The violations in the first two schemes were observed from the quarter ended June 2024 to June 2025, while the issue in Founders Collective Fund pertained to the quarters ended June and September 2024.

Subsequently, Singularity AMC filed two suo-motu settlement applications with Sebi neither admitting nor denying the findings of facts and conclusions of law.

Sebi said the settlement amounts had been paid and that it would not initiate enforcement action against the applicant for the violations covered by the orders.

"...it is hereby ordered that any proceedings that may be initiated for the violations are settled in respect of the applicant (Singularity AMC LLP)," Sebi's Whole Time Members K V R Murty and Kamlesh C Varshney said in two separate orders.

However, the market watchdog clarified that it retains the right to take further action if any misrepresentation is discovered or if the company breaches any terms of the settlement.