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 may desire with regard to their activities.
A VCF established as a company can be wound up in accordance with the provision of the Companies Act. A scheme of the VCF set up as a trust would. be wound up.
– when the period of the scheme mentioned in the placement memorandum is over;
– when 75 per cent of the investors in the scheme resolve in a meeting of the unit holders;
– when SEBI directs in the interest of the investors.
A VCF set up as a body corporate would be wound up in accordance with the provisions of the statute under which it is constituted.
The trustees trustee company of the VCF set up as a trust or the Board of Directors in case of a company body corporate must inform SEBI investors of the circumstances leading to the winding up of the scheme. On and from the date of such intimation, further investment would not be made on behalf of the scheme. Within three months from the date of intimation, the assets of the scheme would be liquidated and the proceeds accruing to the investors distributed to them after satisfying all liabilities.