Motilal Oswal Alternative Investment Trust and its investment manager, Motilal Oswal Asset Management Company, have settled a case with the Securities and Exchange Board of India (Sebi) by paying ₹38.76 lakh (approximately $46,500 USD) for alleged violations of alternative investment fund (AIF) norms. The entities filed applications to settle the case without admitting or denying the findings. The case arose from concerns about their handling of 109 defaulting investors, from whom they retained ₹8.69 crore out of ₹35.17 crore paid, which is nearly 25% of the funds contributed by these investors. Sebi also noted failures in investor service, including a situation where an investor was wrongly classified as a defaulter. Furthermore, the AIF was criticized for not having a documented process for managing distributors and for not taking action against them in cases of investor defaults. The settlement allows the applicants to avoid further proceedings for these violations.