THE GAZETTE OF INDIA
EXTRA ORDINARY
PART II SECTION 3 SUB-SECTION (ii)
PUBLISHED BY AUTHORITY
MUMBAI
THE 15TH DAY OF SEPTEMBER, 2000
NOTIFICATION
SECURITIES AND EXCHANGE
BOARD OF INDIA
(FOREIGN
VENTURE CAPITAL INVESTORS) REGULATIONS,
2000
S.O. 832 (E) In exercise
of the powers conferred by sub-section
(1) of Section 30 of the Securities and
Exchange Board of India Act, 1992 (15 of
1992), the Securities and Exchange Board
of India hereby makes the following
regulations namely: -
CHAPTER I
PRELIMINARY
Short title and
commencement
1. (1) These regulations
may be called the Securities and
Exchange Board of India (Foreign Venture
Capital Investor) Regulations, 2000.
(2) They shall come into
force on the date of their publication
in the Official Gazette.
Definitions
2 (1) In these
regulations, unless the context
otherwise requires, -
(a) "Act" means the
Securities and Exchange Board of India
Act, 1992 (15 of 1992);
(b) "certificate"
means a certificate of registration
granted by the Board under regulation 7.
(c) "designated bank"
means any bank in India which has been
permitted by the Reserve Bank of India
to act as banker to the Foreign Venture
Capital Investor.
(d) "domestic custodian"
means a person registered under the
Securities and Exchange Board of India
(Custodian of Securities) Regulations,
1996.
1*[(e)
"enquiry officer" means an enquiry
officer appointed by the Board, under
regulation 24].
2*[(ee)
"Inspection or Investigation Officer"
means an officer appointed by the Board,
under regulation 16].
(f) "equity linked
instruments" includes instruments
convertible into equity share or share
warrants, preference shares, debentures
compulsorily ; 3*[or
optionally] convertible into equity.
(g) ; 4*["foreign
venture capital investor" means an
investor incorporated and established
outside India, is registered under these
Regulations and proposes to make
investment in accordance with these
Regulations.
(h) "form"
means any of the forms set out in the
First Schedule.
(i)
"investible funds"
means the fund committed for investments
in India net of expenditure for
administration and management of the
fund.
(j) "negative list"
means a list of items as specified in
Third Schedule.
(k) "Schedule" means a
schedule annexed to these regulations;
(l) "Venture Capital
Fund" means a Fund established in the
form of a Trust, a company including a
body corporate and registered under
Securities and Exchange Board of India
(Venture Capital Fund) Regulations,
1996, which
(i)
has a dedicated pool of capital;
(ii) raised in the manner
specified under the Regulations; and
(iii) invests
; 5*[*****]
in accordance with the Regulations.
(m) "venture capital
undertaking" means a domestic company:-
(i)
whose shares are not listed in a recognised stock
exchange in India;
(ii) which is
engaged in the business of providing
services, production or manufacture of
articles or things, but does not include
such activities or sectors which are
specified in the negative list by the
Board, with approval of Central
Government, by notification in the
Official Gazette in this behalf."
(2) Words and expressions
used and not defined in these
regulations but defined in the Act or
Securities and Exchange Board of India
(Venture Capital Funds) Regulations,
1996 shall have the same meaning as are
respectively assigned to them in the Act
or the said regulations.
Foot notes
1.
Substituted for the following clause by
the SEBI (Foreign Venture Capital
Investors) (Amendment) Regulations, 2001
published in the Official Gazette of
India dated June 07.06.2001
"enquiry or
investigating officer" means an enquiry
or investigating officer appointed by
the Board, under regulation 16.
2. Clause (ee)
inserted by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated
07.06.2001.
3.The
words “or optionally” after the words
“preference shares, debentures
,compulsorily” wereinserted by
SEBI ( Foreign Venture Capital
Investors)(Amendment) Regulations, 2004
published in the official Gazette of
India dated 5.04.2004
4.
Following Clause g to regulation 2 was substituted by
SEBI (Foreign Venture Capital Investors)
Amendment) Regulations, 2004 published
in the Official Gazette of India dated
5.04.2004.
“(g)” Foreign venture
capital Investor” means an investor
incorporated, established outside India,
which proposes to make investment in
venture capital fund(s)
or venture
capital undertakings in India and is
registered under these Regulations”.
5.
The words” in venture capital
undertaking” in clause(l)
, in sub clause (iii) were omitted by
SEBI(Foreign Venture Capital Investors)
Amendment) Regulations, 2004 published
in the Official Gazette of India dated
5.04.2004.
CHAPTER II
REGISTRATION OF
FOREIGN VENTURE CAPITAL INVESTORS
Application for grant of
certificate
3. For the purposes of
seeking registration under these
regulations, the applicant shall make an
application to the Board in Form A along
with the application fee as specified in
Part A of the Second Schedule to be paid
in the manner specified in Part B
thereof.
Eligibility Criteria
4. (1) For the purpose of
the grant of a certificate to an
applicant as a Foreign Venture Capital
Investor, the Board shall consider the
following conditions for eligibility,
namely: -
(a) the applicants track
record, professional competence,
financial soundness, experience, general
reputation of fairness and integrity.
(b) Whether the applicant
has been granted necessary approval by
the Reserve Bank of India for making
investments in India; 6*[**]
(c) whether the applicant
is an investment company, investment
trust, investment partnership, pension
fund, mutual fund, endowment fund,
university fund, charitable institution
or any other entity incorporated outside
India; or
(d) whether the applicant
is an asset management company,
investment manager or investment
management company or any other
investment vehicle incorporated outside
India; 7*[**]
(e) whether the applicant
is authorised to
invest in venture capital fund or carry
on activity as a 8*[foreign
venture capital investors]; 9*[**]
(f) whether the
applicant is regulated by an appropriate
foreign regulatory authority or is an
income tax payer; or submits a
certificate from its banker of its or
its promoter’s track record where the
applicant is neither a regulated entity
nor an income tax payer.
(g) the applicant
has not been refused a certificate by
the Board.
(h) whether the
applicant is a fit and proper person.
10*[ Applicability
of Securities and Exchange Board of
India (Criteria for Fit and proper
Person) Regulations, 2004
4A. The provisions of the
Securities and Exchange Board of India
(Criteria for fit and proper person)
Regulations, 2004 shall, as for as may
be, apply to all applicants or the
foreign venture capital investors under
these regulations”]
Furnishing of
information, clarification
5. The Board may require
the applicant to furnish such further
information as it may consider
necessary.
Consideration of
application
6. An application which
is not complete in all respects shall be
rejected by the Board:
Provided that, before
rejecting any such application, the
applicant shall be given an opportunity
to remove, within thirty days of the
date of receipt of communication, the
objections indicated by the Board.
Provided further that the
Board may, on being satisfied that it is
necessary to extend the period specified
above may extend such period not beyond
ninety days.
Procedure for grant of
certificate
7. (1) If the Board is
satisfied that the applicant is eligible
for the grant of certificate, it shall
send an
intimation to
the applicant.
(2) On receipt of
intimation, the applicant shall pay to
the Board, the
registration fee specified in Part A of
the Second Schedule in the manner
specified in Part B thereof.
(3) The Board shall on
receipt of the registration fee grant a
certificate of registration in Form B.
Conditions of certificate
8. The certificate
granted to the foreign venture capital 11*[investor]
under regulation 7 shall be inter-alia,
subject to the following conditions,
namely:-
(a) it shall abide by the
provisions of the Act, and these
regulations;
(b) it shall appoint a
domestic custodian for purpose of
custody of securities;
(c) it shall
enter into arrangement with a designated
bank for the purpose of operating a
special non-resident rupee or foreign
currency account.
(d) it shall
forthwith inform the Board in writing if
any information or particulars
previously submitted to the Board are
found to be false or misleading in any
material particular or if there is any
change in the information already
submitted.
Procedure where
certificate is not granted
9. (1) On considering an
application made under regulation 3, if
the Board is of the opinion that a
certificate should not be granted, it
may reject the application after giving
the applicant a reasonable opportunity
of being heard.
(2) The decision of the
Board to reject the application shall be
communicated to the applicant.
Effect of refusal to
grant certificate
10. Any applicant whose
application has been rejected under
regulation 9 shall not carry on any
activity as a Foreign Venture Capital
Investor.
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IV, V, VI, Sch I, Sch II, Sch III
Foot notes
6. "or" deleted by the
SEBI (Foreign Venture Capital Investors)
(Amendment) Regulations, 2001 published
in the Official Gazette of India dated
07.062001
7. "or"
deleted by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated June
07.06.2001.
8. Substituted for
"venture capital fund" by the SEBI
(Foreign Venture Capital Investors)
(Amendment) Regulations, 2001 published
in the Official Gazette of India dated
07.06.2001.
9. "or"
deleted by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated June
07.06.2001.
10. Clause (4A) inserted by
the SEBI (Foreign Venture Capital
Investors) (Amendment) Regulations, 2004
published in the Official Gazette of
India dated 5.04.2004
11. Substituted for
"fund" by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated
07.06.2001.
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IV, V, VI, Sch I, Sch II, Sch III
CHAPTER III
INVESTMENT
CONDITIONS AND RESTRICTIONS
Investment Criteria for a
Foreign Venture Capital Investor
11. All investments to be
made by a foreign venture capital
investors shall be subject to the
following conditions: -
(a) it shall
disclose to the Board its investment
strategy.
(b) 12*[**]
it can invest its total funds committed
in one venture capital fund 13*[***].
(c) it shall make
investments 14*[**]
as enumerated below:
(i) atleast 15*[66.67%]
of the investible funds
shall be invested in unlisted equity
shares or equity linked instruments 16*[of
Venture Capital Undertaking].
(ii) not more than 17*[33.33%]
of the investible funds
may be invested by way of:
(a) subscription to
initial public offer of a venture
capital undertaking whose shares are
proposed to be listed 18*[**]
(b) debt or
debt instrument of a venture capital
undertaking in which the 19*[foreign
venture capital investor] has already
made an investment by way of equity.
(c) 20*[preferential
allotment of equity shares of a listed
company subject to lock in period of one
year].
(d) 21*[
the equity
shares or equity linked instruments of a
financially weak company or a sick
industrial company whose shares are
listed].
Explanation 1:- For the
purpose of these regulations, a
“financially weak company “ means a
company, which has at the end of the
previous financial year accumulated
losses, which has resulted in erosion or
more than 50% but less than 100% of its
net worth as at the beginning of the
previous financial year.”
(e) 22*[Special
Purpose Vehicles which are created for
the purpose of facilitating or promoting
investment in accordance with these
Regulations].
Explanation – the
investment conditions and restrictions
stipulated in clause (c) of regulation
11 shall be achieved by the Foreign
Venture Capital Investor by the end of
its life cycle”.
(d) 23*[It
shall disclose the duration of life
cycle of the fund].
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IV, V, VI, Sch I, Sch II, Sch III
Foot notes
12. “while” omitted by
the SEBI (Foreign Venture capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004.
13.”it shall however not
invest more than 25% of the funds
committed for investments to India in
one Venture Capital Undertaking” omitted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004
14. “in the
Venture Capital Undertaking” omitted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004.
15. Substituted for
“75%” by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004.
16.”of Venture Capital
Undertaking” inserted by
the SEBI (Foreign Venture Capital
Investors) (
Amendment) Regulations, 2004
published in the Official Gazette of
India dated 5.04.2004.
17.Substituted for
“25%” by the SEBI (Foreign Venture
Capital Investors) ( Amendment)
Regulations, 2004 published in the
Official Gazette of India dated
5.04.2004.
18.” Subject to lock in
period of one year” omitted
by the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004
19. Substituted for
"venture capital fund" by the SEBI
(Foreign Venture Capital Investors)
(Amendment) Regulations, 2001 published
in the Official Gazette dated 07.06.2001
20.
Clause (c) in sub clause (ii) inserted
by the
SEBI (Foreign Venture Capital Investors)
( Amendment) Regulations, 2004 published
in the Official Gazette of India dated
5.04.2004.
21.Clause (d)
in sub clause (ii) ) inserted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004.
22. Clause (e) in sub
clause (ii) ) inserted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004.
23. Clause (d) in
Regulation 11 inserted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004
CHAPTER IV
GENERAL
OBLIGATIONS AND RESPONSIBILITIES
Maintenance of books and
records
12. (1) Every Foreign
Venture Capital Investor shall maintain
for a period of eight years, books of
accounts, records and documents which
shall give a true and fair picture of
the state of affairs of the Foreign
Venture Capital Investor.
(2) Every Foreign Venture
Capital Investor shall intimate to the
Board, in writing, the place where the
books, records and documents referred to
in sub-regulation (1) are being
maintained.
Power to call for
information
13. (1) The Board may at
any time call for any information from a
Foreign Venture Capital Investor with
respect to any matter relating to its
activity as a Foreign Venture Capital
Investor.
(2) Where any information
is called for under sub-regulation (1)
it shall be furnished within the time
specified by the Board.
General Obligations and
Responsibilities
14 (1) Foreign Venture
Capital Investor or a global custodian
acting on behalf of the foreign venture
capital investor shall enter into an
agreement with the domestic custodian to
act as a custodian of securities for
Foreign Venture Capital Investor.
(2) Foreign Venture
Capital Investor shall ensure that
domestic custodian takes steps for,-
(a) monitoring of
investment of Foreign Venture Capital
Investors in India
(b) furnishing of
periodic reports to the Board
(c) furnishing such
information as may be called for by the
Board.
Appointment of designated
bank
15. Foreign Venture
Capital Investor shall appoint a branch
of a bank approved by Reserve Bank of
India as designated bank for opening of
foreign currency denominated accounts or
special non-resident rupee account.
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IV, V, VI, Sch I, Sch II, Sch III
CHAPTER V
INSPECTION AND
INVESTIGATIONS
Board's right to inspect
or investigate
16. The Board may, suo-moto or
upon receipt of information or
complaint, cause an inspection or
investigation to be made in respect of
conduct and affairs of any foreign
venture capital investor by an Officer
whom the Board considers fit for any of
the following reasons namely: -
(a) to ensure
that the books of account, records and
documents are being maintained by the
foreign venture capital investor in the
manner specified in these regulations.
(b) to inspect or
investigate into complaints received
from investors, clients or any other
person, on any matter having a bearing
on the activities of the foreign venture
capital investor;
(c) to ascertain whether
the provisions of the Act and these
regulations are being complied with by
the foreign venture capital investor;
and
(d) to inspect
or investigate suo-moto into
the affairs of a foreign venture capital
investor in the interest of the
securities market or in the interest of
investors.
Obligation of Foreign
Venture Capital Investor on
investigation or inspection by Board
17. (1) It shall be the
duty of every Foreign Venture Capital
Investor in respect of whom an
inspection or investigation has been
ordered under regulation
16 and
any other person associated who is in
possession of relevant information
pertaining to conduct and affairs of
such Foreign Venture Capital Investor
including asset management company or
fund manager, to produce to the
Inspecting or Investigating Officer such
books, accounts and other documents in
his custody or control and furnish him
with such statements and information as
the said Officer may require for the
purposes of the inspection or
investigation.
(2) It shall be the duty
of Foreign Venture Capital Investor and
any other person associated who is in
possession of relevant information
pertaining to conduct and affairs of the
Foreign Venture Capital Investor to give
to the Inspecting or Investigating
Officer all such assistance and shall
extend all such co-operation as may be
required in connection with the
inspections or investigations and shall
furnish such information sought by the
Inspecting or Investigating Officer in
connection with the inspections or
investigations.
(3) The Inspecting or
Investigating Officer shall, for the
purposes of inspection or investigation,
have power to examine on oath and record
the statement of any person responsible
for or connected with activities of
Foreign Venture Capital Investor or any
other person associated having relevant
information pertaining to such Foreign
Venture Capital Investor.
(4) The Inspecting or
Investigating Officer shall, for the
purposes of inspection or investigation,
have power to get authenticated copies
of documents, books, accounts of Foreign
Venture Capital Investor, from any
person having control or custody of such
documents, books or accounts.
Submission of the Report
18. The Inspecting or
Investigating Officer shall on
completion of inspection or
investigations, submit a report to the
Board.
Board's right to issue
any direction to Foreign Venture Capital
Investor
19. The Board may after
consideration of the inspection or
investigation report and after giving a
reasonable opportunity of hearing to the
Foreign Venture Capital Investor,
require it to take such measure or issue
such directions as it deems fit in the
interest of capital market and
investors, including directions in the
nature of: -
(a) requiring the person
concerned to dispose of the securities
or disinvest in a manner as may be
specified in the directions;
(b) requiring the person
concerned not to further invest for a
particular period;
(c) prohibiting the
person concerned from operating in the
capital market in India for a specified
period.
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IV, V, VI, Sch I, Sch II, Sch III
CHAPTER VI
PROCEDURE FOR
ACTION IN CASE OF DEFAULT
Board's right to suspend
or cancel certificate of registration
20. Without prejudice to
the appropriate directions or measures
under regulation 19, it may after
consideration of the investigation
report, initiate action for suspension
or cancellation of the registration of
such Foreign Venture Capital Investor:
Provided that no such
certificate of registration shall be
suspended or cancelled unless the
procedure specified in regulation 23 is
complied with.
Suspension of certificate
21. The Board may suspend
the certificate where the Foreign
Venture Capital Investor:
(a) contravenes any of
the provisions of the Act or these
regulations;
(b) fails to furnish any
information relating to its activity as
a Foreign Venture Capital Investor as
required by the Board;
(c) furnishes to the
Board information which is false or
misleading in any material particular;
(d) does not submit
periodic returns or reports as required
by the Board;
(e) does not co-operate
in any enquiry or inspection conducted
by the Board;
Cancellation of
certificate
22. The Board may cancel
the certificate granted to a Foreign
Venture Capital Investor: -
(a) when the Foreign
Venture Capital Investor is guilty of
fraud or has been convicted of an
offence involving moral turpitude;
Explanation: The
expression "fraud" has the same meaning
as is assigned to it in section 17 of
the Indian Contract Act, 1872. (9 of
1872)
(b) the Foreign Venture
Capital Investor has been guilty of
repeated defaults of the nature
mentioned in the regulation 21; or
(c) Foreign Venture
Capital Investor does not continue to
meet the eligibility criteria laid down
in these regulations;
(d) contravenes any
of the provisions of the Act or these
regulations.
Manner of making order of
cancellation or suspension
23. No order of penalty
or cancellation of certificate shall be
imposed on the Foreign Venture Capital
Investor except after holding an enquiry
in accordance with the procedure
specified in the regulation 24.
Manner of holding enquiry
before suspension or cancellation
24. (1) For the purpose
of holding an enquiry under regulation
23, the Board may appoint one or more
enquiry officers.
(2) The enquiry officer
shall issue to the Foreign Venture
Capital Investors, at its registered
office or its principal place of
business or its agent or representative
in India, a notice setting out the
grounds on which action is proposed to
be taken against it and calling upon it
to show cause against such action within
a period of fourteen days from the date
of receipt of the notice.
(3) The Foreign Venture
Capital Investor may, within fourteen
days from the date of receipt of such
notice, furnish to the enquiry officer a
written reply, together with copies of
documentary or other evidence relied on
by it or sought by the Board from the
Foreign Venture Capital Investor.
(4) The enquiry officer
shall give a reasonable opportunity of
hearing to the Foreign Venture Capital
Investor to enable him to make
submissions in support of its reply made
under sub-regulation (3).
(5) Before the enquiry
officer, the Foreign Venture Capital
Investor may appear through any person
duly authorised by
the Foreign Venture Capital Investor:
Provided that no lawyer
or advocate shall be permitted to
represent the Foreign Venture Capital
Investors at the enquiry:
Provided further that
where a lawyer or an advocate has been
appointed by the Board as a presenting
officer under sub-regulation (6), it
shall be lawful for the Foreign Venture
Capital Investor to present its case
through a lawyer or advocate.
(6) The enquiry officer
may, if he considers it necessary, ask
the Board to appoint a presenting
officer to present its case
(7) The enquiry officer
shall, after taking into account all
relevant facts and submissions made by
the Foreign Venture Capital Investor,
submit a report to the Board and
recommend the penal action, if any, to
be taken against the Foreign Venture
Capital Investor as also the grounds on
which the proposed action is justified.
Show-cause notice and
order
25. (1) On receipt of the
report from the enquiry officer, the
Board shall consider the same and may
issue to the Foreign Venture Capital
Investor a show-cause notice as to why
the penal action as proposed by the
enquiry officer or such appropriate
action should not be taken against it.
(2) The Foreign Venture
Capital Investor shall, within fourteen
days of the date of the receipt of the
show-cause notice, send a reply to the
Board.
(3) The Board, after
considering the reply, if any, of the
Foreign Venture Capital Investor, shall,
as soon as possible pass such order as
it deems fit.
Effect of suspension and
cancellation of certificate
26. (1) On and from the
date of the suspension of the
certificate, the Foreign Venture Capital
Investor shall cease to carry on any
activity as a Foreign Venture Capital
Investor during the period of
suspension, and shall be subject to such
directions of the Board with regard to
any records, documents or securities
that may be in its custody or control,
relating to its activities as Foreign
Venture Capital Investor, as the Board
may specify.
(2) On and from the date
of cancellation of the certificate, the
Foreign Venture Capital Investor shall,
with immediate effect, cease to carry on
any activity as a Foreign Venture
Capital Investor, and shall be subject
to such directions of the Board with
regard to the transfer of records,
documents or securities that may be in
its custody or control, relating to its
activities as Foreign Venture Capital
Investor, as the Board may specify.
Publication of order of
suspension or cancellation
27. The order of
suspension or cancellation of
certificate passed under regulation 25
may be published by the Board in two
newspapers.
Action against
intermediary
28. The Board may
initiate action for suspension or
cancellation of registration of an
intermediary holding a certificate of
registration under section 12 of the Act
who fails to exercise due diligence in
the performance of its functions or
fails to comply with its obligations
under these regulations.
Provided that no such
certificate of registration shall be
suspended or cancelled unless the
procedure specified in the regulations
applicable to such intermediary is
complied with.
24*[Appeal
to Securities Appellate Tribunal]
29. Any person aggrieved
by an order of the Board under these
regulations may prefer an appeal to the
Securities Appellate Tribunal in
accordance with section 15T of the Act.]
[F.
No.SEBI/LE-19/14797/2000]
D.R.MEHTA
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA
Foot
notes
24. Substituted for
"Appeal to Securities and Exchange Board
of India" by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated
07.06.2001.
FIRST SCHEDULE
FORM A
SECURITIES AND EXCHANGE
BOARD OF INDIA
(FOREIGN VENTURE CAPITAL INVESTORS)
REGULATIONS, 2000
(REGULATION 3)
APPLICATION FORM FOR
GRANT OF CERTIFICATE OF
REGISTRATION AS FOREIGN VENTURE
CAPITAL INVESTOR
WITH THE SECURITIES AND EXCHANGE
BOARD OF INDIA
SECURITIES AND EXCHANGE
BOARD OF INDIA
Mittal Court
`B' Wing, 1st Floor
Nariman Point,
Bombay - 400 021, INDIA
1. Name, address,
telephone no., telex no. and fax no. of
the applicant. In case the applicant has
a representative office in India, the
particulars may also be given for that
office.
2. Please indicate
whether the applicant belongs to any one
or more of the following categories:
Pension Fund, Mutual
Fund, Investment Trust, Investment
company, Investment trust, Investment
partnership, Asset Management Company,
Investment manager, Investment
Management Company, Endowment fund,
University fund, Charitable institutions
or any other investment vehicle
incorporated and established outside
India
3. a)
The date and place of incorporation of
the applicant. (Details of statute under
which incorporated).
b) Brief description of
the principal activities of the
applicant and the year of commencement
of such activities.
c) Brief description of
the group, if any, to which the
applicant belongs.
4. Whether any of the
following documents are submitted?
i.
Copy of certificate of registration with
home regulator; or
ii. Copy of income tax return filed in
the home country; or
iii. Copy of bankers certificate fair
track record of the applicant
5. Please also state
whether there has been any instance of
violation or non-adherence to the
securities laws, code of ethics/conduct,
code of business rules, for which the
applicant, or its parent/ holding
company or affiliate may have been
subjected to economic, or criminal
liability or suspended from carrying out
its operations, or the registration has
been revoked, temporarily or
permanently. If no, submit an
undertaking.
6. Please indicate the
names of the clients on whose behalf you
propose to invest in India.
7. Please indicate the
manner in which you propose to conduct
your investments in India i.e. whether
through an establishment in India or
through any other office outside India.
Please give details, and also the name
of the contact person/compliance
officer.
8. Name and address of
the designated bank branch in India
through whom investment is proposed to
be made.
9. a)
Name, address, telephone no., telex no.,
and fax no. of the domestic custodian.
Please also present the background
information on the custodian, including
volume of business handled, organisational infrastructure
and the number of investment companies
for which the domestic custodian is
acting, or has acted, as custodian.
b) Particulars of the
agreement entered into with the domestic
custodian.
We hereby agree and
declare that the information supplied in
the application, including the
attachment sheets, is complete and true.
AND we further agree that
we will immediately notify the
Securities and Exchange Board of India
of any change in the information
provided in the application.
We further agree that we
shall comply with the provisions of the
Act, and regulations issuedthereunder and
all other relevant laws.
We further agree that as
a condition of grant of certificate of
registration, we shall abide by such
operational instructions/ directives as
may be issued by Securities and Exchange
Board of India under the provisions of
the Act from time to time.
For and on behalf
of_____________________________________
(Name of the applicant)
Authorised Signatory
___________________ ___________________
(Name)
(Signature)
Date:
Place:
Note:
1. Securities and
Exchange Board of India (SEBI) reserves
the right to call for any further
information from the applicant regarding
his application.
2. Applications, superscribed "Application
for Registration of Foreign Venture
Capital Investors ", should be submitted
in duplicate, in sealed envelopes, at
Securities and Exchange Board of India's
office.
Documents to be enclosed
with the application:
a. Documents to support
registration or regulation by a
Securities Commission and / or Self
Regulatory Organisation,
or any other appropriate
regulatory/registering authority or
b. Copy of income tax
return filed in the home country; or
c. Copy of bankers
certificate for fair track record of the
applicant
FORM B
SECURITIES AND EXCHANGE
BOARD OF INDIA
(FOREIGN VENTURE CAPITAL INVESTORS)
REGULATIONS, 2000
[SEE REGULATION 7(3)]
CERTIFICATE OF
REGISTRATION AS FOREIGN VENTURE
CAPITAL
INVESTOR
I. In exercise of the
powers conferred by sub-section (1) of
section 12 of the Securities and
Exchange Board of India Act, 1992, (15
of 1992) read with the regulations made thereunderthe
Board hereby grants a certificate of
registration to
------------------------------------------------------------------------
as a Foreign Venture Capital Investor
subject to the conditions specified in
the Act and in the regulations made thereunder.
II. The Registration
Number of the foreign venture capital 25*[investor]
is IN/FVCI/ /
Date:
Place: MUMBAI
By order
Sd/-
For
and on behalf of
SECURITIES AND EXCHANGE BOARD OF INDIA
Foot notes
25. Substituted for
"fund" by the SEBI (Foreign Venture
Capital Investors) (Amendment)
Regulations, 2001 published in the
Official Gazette of India dated
07.06.2001
SECOND SCHEDULE
SECURITIES AND EXCHANGE BOARD OF
INDIA
(FOREIGN VENTURE CAPITAL INVESTOR)
REGULATIONS, 2000
[SEE REGULATIONS 3 AND 7(2)]
FEES
PART A
Amount to be paid as fees
Application fee
(US$) 26*5,
000
Registration fee shall be payable at the
time of registration
for grant of certificate (US
$) 27*20,
000
PART B
I. The fees specified
above shall be payable by bank draft in favour of
"The Securities and Exchange Board of
India" payable at Mumbai.
Back to top, I, III,
IV, V, VI, Sch I, Sch II, Sch III
Foot Notes
26.
The figures "1,000” for Application fee
substituted by “5,000” in Second
Schedule , for Part A by SEBI (Foreign
Venture Capital Investors) (Amendment)
Regulations, 2006 published in the
Official Gazette of India dated
06.09.2006.
27.
The figures "10,000” for Registration
fee substituted by “20,000” in Second
Schedule , for Part A by SEBI (Foreign
Venture Capital Investors) (Amendment)
Regulations, 2006 published in the
Official Gazette of India dated
06.09.2006.
THIRD SCHEDULE
[SEE REGULATION 2 (j)]
SECURITIES AND EXCHANGE
BOARD OF INDIA
(FOREIGN VENTURE CAPITAL INVESTOR)
REGULATIONS, 2000
NEGATIVE LIST
1. 28* [***]
2. Non-banking financial
services 29* [excluding
those Non – Banking Financial companies
which are registered with Reserve Bank
of India and have been categorized as
Equipment Leasing or Hire Purchase
companies.
3. Gold financing 30* [excluding
those companies which are engaged in
gold financing forjewellery.
4. Activities not
permitted under the Industrial Policy of
Government of India
5. Any other activity
which may be specified by the Board in
consultation with the Government of
India from time to time.
Foot Notes
28. The
Following Clause
1 omitted by the SEBI
(Foreign Venture Capital Investors) (
Amendment) Regulations, 2004 published
in the Official Gazette of India dated
5.04.2004.
“1. Real Estate”
29.
the words inserted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004
30.
the words inserted by
the SEBI (Foreign Venture Capital
Investors) ( Amendment) Regulations,
2004 published in the Official Gazette
of India dated 5.04.2004
