The Securities and Exchange Board of India (Sebi) has disposed of a show cause notice against Karvy Capital Ltd and its management, concluding there were no violations of alternative investment fund (AIF) regulations. This decision followed an investigation of Karvy Capital Alternative Investment Trust and KCAP Alternative Investment Fund. Despite earlier findings that Karvy’s parent, Karvy Stock Broking Ltd, was unfit for the market due to multiple violations, Sebi acknowledged the management’s compliance and efforts to mitigate concerns. No monetary penalties were imposed, as Sebi found the allegations against Karvy Capital unsubstantiated.