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Suspension of Registration
The registration of a FVCI can be suspended by SEBI If it (1) Contravenes any of the provisions of the SEBI Act or SEBI FVCI Regulations, (2) fails to furnish any information relating to its activities as required by SEBI, (3) furnish to it information which is false misleading in any material particular, (4) does not submit periodic returns reports as required by it and (5) does not
Inspection and Investigation
The SEBI has the right to suo moto, or upon receipt of information complaint, order an introspection in respect of conduct and affairs of any FVCI by an officer to (i) ensure that the books accounts documents are being maintained in the specified manner, (ii) Inspect investigate into complaints from investors chants any other person on any matter having a bearing on its activities,
General Obligations and Responsibilities
The FVCIs have to maintain for a period of eight years, books of accounts records documents which would give a true and fair picture of their affairs and intimate to SEBI the place where they are being maintained. They may be called upon at any time by SEBI to furnish within a specified time any information with respect to any matter relating to their activities. Moreov
Registration
A FVCI should be registered with SEBI to carry on business in India. To seek registration with SEBI. an applicant should apply in the prescribed form along with an application fee of US $1.000. The eligibility criteria for registration of an applicant include the following conditions: (i) its track record. professional competence, financial soundness, experience, general reputation of fairness and
SEBI Foreign Venture Capital Investors (FVCIs) Regulations, 2000
A foreign venture capital investor (FVCI) is an investor incorporated and established outside India which proposes to make investment in venture capital funds (VCFs) life capital undertakings (VCUs) in India and its registered with SEBI under these regulations. While VCFs refer to funds established in the form of a trust company including a body co
Suspension of Registration
The certificate of registration granted to a VCF can be suspended by SEBI, in addition to issuing of directions measures specified above, in the following circumstances:
(a) Contravention of any of the provisions of the SEBI Act or these regulations;
(b) Failure to furnish any information relating to its activity as a VCF as required by SEBI;
(c) Furnishing to SEBI information which is f
Obligations of VCFs
Every officer of the VCF, in respect of whom an inspection investigation has been ordered by SEBI and any other associate person who is in possession of relevant information pertaining to its conduct affairs, including fund manager asset management company, would be duty bound to (1) produce for the investigating inspecting offer such books; accounts and other documents as are in his custody
Maintenance of Books Records
The VCFs must maintain for a period of eight years, books of accounts records documents which give a true and fair picture of the state of their affairs. SEBI can, at times, call for information with respect to any matter relating to it activity as a VCF which must be furnished submitted within the specified time. It can also, at any time, call upon them to file such reports as it m
General Obligations and Responsibilities
A VCF is not permitted to issue any document advertisement inviting offers from public for subscription purchase of any of its units. It may receive money from investment in the VCF through only private placement of its units.
Placement Memorandum Subscription Agreement
The VCF should (i) issue a placement memorandum containing details of the terms conditions or (ii) ente
Restriction on Investment by VCF
The VCFs should, one, disclose the Investment strategy at the time of their registration. Two, they cannot invest more than 25 per cent corpus of the fund in one VCU. Three, they are prohibited from investing in associated companies. An associate company means a company which a director trustee sponsor settler of the VCF asset management company holds individually collectively e
