India’s market regulator, the Securities and Exchange Board of India (SEBI), has imposed a one-year ban on fund manager Brick Eagle LLP after uncovering compliance breaches, as stated in an order published on the regulator’s website. Additionally, SEBI has taken action against Catalyst Trustee, imposing a similar one-year ban for overlooking compliance violations by Brick Eagle LLP. However, the ban applies solely to trustee services offered by Catalyst and not its primary business as a debenture trustee.
Brick Eagle LLP, led by former Standard Chartered executive Rajesh Krishnan, introduced a ₹500 crore affordable housing fund in 2017, aimed at financing housing projects priced below ₹10 lakh per unit and backed by government subsidies.
Initial investors in the fund included Axis Bank, Bennett Property Holdings Company (BPHCL), Pulkit Benefit Trust, Ridaan and Ruhaan Buildwell, and Brick Eagle itself. SEBI revealed that some investors had raised concerns about lapses by the fund manager.
