Securities and Exchange Board of India issues settlement order for Motilal Oswal Alternative Investment Trust

The Securities and Exchange Board of India (SEBI) manages market integrity through both adjudication and settlement mechanisms. The SEBI (Settlement Proceedings) Regulations, 2018, allow entities to resolve show-cause notices by paying a settlement fee and fulfilling other conditions, thereby avoiding prolonged litigation. On April 20, 2026, the regulator applied this mechanism to Motilal Oswal Alternative Investment Trust, addressing concerns regarding the operational conduct of the fund.

This settlement is part of SEBI's broader effort to ensure compliance within the Alternative Investment Fund (AIF) sector, which has seen rapid growth and increased regulatory scrutiny. While the specific details of the alleged non-compliance were not detailed in the summary order, settlement orders typically involve issues such as reporting delays, investment limit breaches, or disclosure failures. By settling, the entity ensures that the cloud of regulatory uncertainty is removed, allowing for continued operations under strict oversight.

• Regulator: Securities and Exchange Board of India.
• Entity: Motilal Oswal Alternative Investment Trust.
• Order Date: April 20, 2026.
• Mechanism: SEBI (Settlement Proceedings) Regulations, 2018.

Glossary

Alternative Investment Fund (AIF): A privately pooled investment vehicle that collects funds from sophisticated investors for investing in assets like private equity, venture capital, or hedge funds.