Investment Conditions and Restrictions Minimum Investment in VCF

The VCFs are authorized to raise funds money from (i) Indian, (ii) foreign and (iii) non resident Indians (NRIs) investors by way of issue of units, that is, beneficial interest of the Investors in the scheme fund floated by trust or shares issued by a company, including a body corporate. Included in such funds raised is the, actual money from investors in the form of subscription of securities of VCFs, including from the author of a trust but exclusive of the paid up capital of the trustee, if any. Excepting (a) employees principal director directors of trustee company trustee, (b) employees of fund manager asset management company, the minimum investment in a VCP by an investor must be Rs 5 lakh. Each scheme launched fund set up by a VCF should have a firm commitment from the investors for contribution of at least Rs 5 crore before the start of its operation.

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