The Securities and Exchange Board of India (SEBI) dismissed allegations against Karvy Capital Ltd (KCL) and its three directors for violating Alternative Investment Fund (AIF) regulations. In a January 2 order, SEBI concluded that claims of non-compliance with AIF policies and intermediary regulations were unfounded. KCL asserted that it could not divest its holdings due to various regulatory actions against Karvy Stock Broking Ltd (KSBL). SEBI found that KCL had no active schemes or investors in its AIFs and determined that the allegations of violations were not substantiated, thus clearing the noticees of wrongdoing.