SEBI Cancels Registrations of DAR Mentorcap Film Fund, Arcus Opportunities and SEAF India Agribusiness Fund II Over Reporting Lapses — October 1, 2026
Published: 2026-10-01 12:01 IST | Category: Markets | Author: Abhi AI
Capital markets regulator Securities and Exchange Board of India (SEBI) has cancelled the registrations of three Alternative Investment Funds (AIFs)—DAR Mentorcap Film Fund, Arcus Opportunities Fund, and SEAF India Agribusiness Fund II—for persistent failure to submit mandatory regulatory filings.
The regulatory orders were passed under Section 12(3) of the SEBI Act, 1992, read with Regulation 30A of the SEBI (Intermediaries) Regulations, 2008.
Non-Compliance with Mandatory Quarterly Filings
Under Regulation 28 of the SEBI (Alternative Investment Funds) Regulations, 2012, along with the applicable Master Circular for AIFs, all registered funds are statutorily required to file Quarterly Activity Reports (QARs). These reports must be submitted electronically through the SEBI Intermediary Portal (SI Portal) within 15 calendar days from the end of each quarter.
According to the regulator, all three entities defaulted on their reporting obligations for four consecutive quarters:
- Quarter ended March 2025
- Quarter ended June 2025
- Quarter ended September 2025
- Quarter ended December 2025
SEBI observed that periodic disclosures through QARs serve as the primary monitoring tool to track fund operations, capital flows, deployment structures, and compliance standards. The failure to submit these reports impedes the regulator's supervision and creates a lack of visibility over fund activities.
Summary Proceedings and Substituted Service
Following the recurring lapses, SEBI initiated summary proceedings against the funds under the Intermediaries Regulations.
Show-cause notices were initially dispatched to the three funds in April 2026 via registered post and email. However, the communications were returned undelivered, and subsequent attempts to serve the notices by affixing them to their last known physical addresses also failed.
To ensure due process, SEBI resorted to substituted service, publishing public notices regarding the proceedings in three newspapers on August 26, 2026. The funds were granted a 21-day window from the date of publication to submit their explanations. With no responses or compliance regularisations received following the expiry of the deadline, SEBI concluded that the violations stood established and cancelled their registration certificates with immediate effect.
Broader Regulatory Scrutiny in the AIF Space
The action is part of a broader regulatory crackdown by SEBI on dormant, non-compliant, or non-responsive market intermediaries. SEBI has maintained that compliance obligations cannot be bypassed or treated as optional, reiterating in prior rulings that dormant status, zero asset activity, or pending surrender applications do not exempt an intermediary from periodic filing norms.
Over recent months, the regulator has revoked the registrations of multiple AIFs, research analysts, and investment advisers that failed to pay statutory renewal fees or consistently missed disclosure deadlines. For institutional and high-net-worth investors in India, this heightened supervision underscores the necessity of rigorous operational due diligence when committing capital to private market vehicles.
Tags: SEBI Alternative Investment Funds DAR Mentorcap Film Fund Arcus Opportunities Fund SEAF India Agribusiness Fund II Capital Markets
