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” were inserted 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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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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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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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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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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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 issued thereunder 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 thereunder
the 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 for
jewellery.
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
.
