Regulatory Background The Securities and Exchange Board of India (SEBI) has finalized adjudication proceedings against DMI Income Fund Pte Ltd, a SEBI‑registered foreign portfolio investor (FPI). The regulator’s case centred on two alleged violations of the FPI Regulations. First, the fund failed to inform SEBI or its designated depository participant (DDP) within seven working days about the addition of a new share class, Class K Series 3. The disclosure was finally made through a letter dated 31 July 2024, received by the DDP on 19 August 2024—nearly three years after the share class began trading on 24 August 2021.
Second, between 24 August 2021 and 19 August 2024, the fund invested an additional Rs 204.98 crore through the newly added share class without furnishing the beneficial owner details required by the FPI Regulations. SEBI issued a show‑cause notice on 15 October 2025, demanding an explanation before initiating adjudication and imposing penalties under the SEBI Act.
Settlement Details and Implications While the proceedings were pending, DMI Income Fund opted to settle without admitting or denying the findings. After a meeting with SEBI’s Internal Committee, the fund proposed a settlement amount of Rs 27.625 lakh. The High‑Powered Advisory Committee reviewed the proposal on 29 June and recommended settlement upon payment. A panel of SEBI’s whole‑time members approved the recommendation on 12 August.
The settlement concludes the dispute, allowing DMI Income Fund to comply with regulatory requirements and avoid further penalties. For market participants, the case underscores the importance of timely disclosure and accurate reporting of beneficial ownership for FPIs. SEBI’s decisive action reinforces its commitment to maintaining transparency and protecting Indian investors in the foreign portfolio investment arena.