SEBI Orders Cinema Capital Venture Fund to Shutdown Due to "Serious Mismanagement"

The Securities and Exchange Board of India (SEBI) has directed Cinema Capital Venture Fund to wind up its scheme and return investor funds by July 31, 2025, citing fraud, gross mismanagement, and failure to liquidate assets nearly a decade after the fund's scheduled closure.

Investigations revealed ₹94 crore in undisclosed, interest-free loans to insiders and ₹103 crore improperly invested in related companies, violating investment norms.

SEBI imposed a ₹1.1 crore penalty on key officials and mandated the refund of excess trustee fees to the Investor Protection and Education Fund.

Additionally, directors and management entities have been barred for three years from fund management roles or activities involving public money in SEBI-registered institutions.