SEBI finds ₹1 crore structuring fee in Asirvad NCD case

This order details SEBI's adjudication proceedings against Asirvad Micro Finance Limited (AMFL) for allegedly issuing Non-Convertible Debentures (NCDs) as a private placement that was deemed a public issue due to down-selling to over 200 investors, thereby violating the Companies Act, 2013, and SEBI regulations.

Asirvad Micro Finance Limited (AMFL); Karvy Capital Limited (KCL) is mentioned as the initial allottee and service provider in the allegations.

• SEBI alleged AMFL violated Section 42 of the Companies Act, 2013, and various provisions of the SEBI (Issue and Listing of Debt Securities) Regulations, 2008.
• SEBI observed that NCDs allotted to Karvy Capital Limited were down-sold to 739 investors before listing, deeming the issue a public one.
• SEBI alleged AMFL failed to file a draft offer document, issue an abridged prospectus, or create a Debenture Redemption Reserve (DRR).
• The order records that a Show Cause Notice was served on September 03, 2024, and a hearing was provided on November 06, 2024.
• The text provided is truncated and does not contain the final penalty amount or final direction imposed by the Adjudicating Officer.

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