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Informist, Wednesday, Sept. 23, 2026

MUMBAI – True North Enterprise Pvt. Ltd., the investment manager of True North Fund schemes, paid INR 2.18 million to settle the Securities and Exchange Board of India proceedings over alleged delay in winding up its schemes. True North settled the proceedings without admitting or denying the findings of fact and conclusions of law, according to a SEBI order.  

SEBI alleged that True North Fund Scheme-B and True North Fund III-A continued beyond the tenure permitted under their respective placement memoranda. True North Fund Scheme-B was wound up around 10 years late, the regulator said. The scheme's initial and final close were on Dec. 20, 2004 and its permissible tenure ended on Dec. 19, 2014. However, the investment manager extended the scheme's tenure until Jun. 19, 2020. The last investments were liquidated, and sale proceeds distributed between Dec. 30, 2021 and Jan. 7, 2022. The amounts retained for potential residual liabilities were held in liquid investments, which were disposed of, and the amounts for the credit of bank accounts of the scheme were distributed to the investors in March 2025.

True North Fund III-A's initial and final close was on Oct. 20, 2007 and its permissible tenure ended on Oct. 20, 2017. The scheme should have been wound up by Jan. 20, 2018, SEBI said. However, the last investment was liquidated in July 2024 and amounts retained for potential residual liabilities were disposed of and the remaining funds distributed to investors in March 2025. The winding up was completed on Mar. 29, 2025, according to SEBI. 

For these alleged violations, True North Enterprise proposed a settlement amount of INR 1.09 million for alleged violations by the two funds. SEBI's high-powered advisory committee and its whole-time members' panel agreed on the settlement amount by Jul. 2. True North Enterprise informed SEBI of the remitted amount on Aug. 5. 

SEBI ordered it would not initiate enforcement action against the applicant for violations covered by the respective settlement orders. However, the market regulator retains the right to take appropriate action if any representation made during the settlement proceedings is subsequently found to be untrue, if the applicant breaches the undertakings or waivers submitted during the proceedings, or if there is any shortfall arising from a discrepancy in the calculation of the settlement terms, according to the order.  End

Reported by Eshitva Prakash

Edited by Avishek Dutta

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