In a recent ruling, the Securities and Exchange Board of India (SEBI) dismissed a show cause notice against Karvy Capital Ltd, finding no violations of Alternative Investment Fund (AIF) regulations. The investigation arose from SEBI’s review of Karvy Capital’s AIFs to assess their compliance with the regulator’s “fit and proper” criteria. Despite initial concerns, SEBI concluded that the funds and their management did not breach AIF norms. Karvy Capital had proactively addressed regulatory issues, including surrendering AIF licenses. The ruling followed legal challenges faced by its parent company, Karvy Stock Broking Ltd, previously banned for multiple infractions.