Trinity Alternative Investments says no illicit transactions with Srei Group entities

Trinity Alternative Investment Managers, majority-owned by Srei Infra Finance which is undergoing RBI-mandated insolvency proceedings, has said no illicit transactions have been done with any Srei Group entities. Trinity also said that none of the extant rules define related-party transactions when it comes to Alternative Investment Funds (AIFs) and that Srei group, despite owning 51 per cent stake, does not have a board representation since the entity is only an asset manager.

Last week, reports said the RBI-appointed administrator Rajneesh Sharma has moved the Kolkata bench of the National Company Law Tribunal (NCLT) seeking to include around Rs 8,400 crore loans that Srei group entities have extended to 20 of the 50 investee companies of Trinity, under the ongoing insolvency proceedings.

The administrator has also sought to stall a planned rights issue by Trinity as Srei being under insolvency proceedings cannot participate as it will lead to the company becoming a minority shareholder.

On October 4, 2021, the Reserve Bank of India (RBI) superseded the boards of the group firms — Srei Infra Finance and Srei Equipment Finance. Later, the companies were referred to the NCLT for insolvency proceedings.

The Srei group launched Trinity as a Sebi-registered AIF in 2005 and in mid-2020, sold 49 per cent stake to the Singaporean fund Payaash Capital. As an asset manager, Trinity manages around Rs 1,475 crore, which is invested between 50-odd companies.

Payaash Capital…