The Vistaar Religare Media Fund was a venture capital fund that backed films. The Securities and Exchange Board of India ordered Vistaar Capital Advisors (VCAL), its trustee, and its directors to wind it down by giving exit to unitholders within six months and prohibited VCA from accessing the capital market.
The directive comes after a review of the fund between July 2008 and July 2017. The trustee of the fund is Vistra ITCL (India), while VCAL is its investment manager. The fund was due to close in 2013 but no extension was given after it was formed in 2008 and received funds totaling Rs 43 crore. In contravention of VCF Regulations, which state that no more than 33.33% of a fund’s investible funds may be invested in SPVs, the fund put 52.72% of its total investments in five SPVs.
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The fund failed to keep track of the complaints it received and took no action to get in touch with the complainants or address their concerns. Records pertaining to the specifics of the fund’s withdrawals and investments were missing. All of the assets in the fund’s programme will be valued twice, separately, by two registered valuers. The higher of the two valuations, or Rs 4 million, whichever is higher, will be used to calculate the scheme’s NAV.
The investors will be given the choice to exit first, and this will be done by giving them an in-kind distribution of interests, rights stakes, or shares in the invested enterprises or projects. Investors whose choice for in-kind payout is not exercised will be given the option to leave based on the NAV.
source from: msn.com
