Market regulator Securities and Exchange Board of India (SEBI) yesterday issued general directions for investors that it will respond to applications for registration of venture capital funds (VCFs) or foreign venture capital investors (FVCI) within 21 days.
Advising investors on “how to get registered as a VCF or FVCI”, the regulator said applications for VCFs should be accompanied with all necessary documents and a fee of Rs 1,00,000.
The applications for registration of an entity as FVCI should be accompanied with a fee of 5,000 dollar.
The registration fee would be Rs 10 lakh for VCF and 20,000 dollars for FVCI.
In addition to other documents, an entity seeking registration as FVCI would have to submit copies of certificate of registration with home regulator, income tax return field in the home country and a banker's certificate of fair track record.
The documents should be in conformity with SEBI (Foreign Venture Capital Investors) Regulations, 2000.
In case of VCFs, the applicants have been advised to follow the procedure prescribed by the SEBI (Venture Capital Funds) Regulations, 1996.
VCF applicants are also required to submit copies of memorandum and articles of association, registered trust deed in case of a trust and investment management agreement, if applicable, along with the application form.
Both the categories of investors are also required to disclose investment strategy along with the life cycle of the fund.
Source : Zee News