VCF Structures Homework Help

VCF Structures

(a) The necessary legislative provisions for incorporation of entities such as Limit Partnership (LP), Limited Liability Company (LLC) may be made by which of e separate Act or by the way of amending the existing Indian Partnership Act and Companies Act.

(b) SEBI regulations should be amended to include (i) the eligibility for registration entities such as LP, LLC, and so on and when permitted to be incorporated respective statutes, (ii) a provision for registration of fund(s) set up by or a scheme a trust; company, body corporate or any other entity, (iii) provisions for registrations regulation of Foreign Venture Capital Investor (FVCI).

(c) Foreign Venture Capital Investor (FVCI), registered with SEBI, would be eligible to make venture capital investments under automatic route without any ceiling and any requirement of FIPB or RBI approval or, alternatively, in the overall ceiling of 50 per cent in any sector under automatic route without FIPB RBI approval provided the overall ceiling would automatically get substituted by higher ceiling of 51 per cent, 74 per cent and 100 per cent as prescribed under Annexure III of Statement of Industrial Policy or will get reduced in accordance with the ceilings for investment prescribed by the Government of India in certain specified sectors like banking, insurance, and so on.

(d) FVCIs should be permitted to park their foreign remittances in foreign exchange in a bank in India or outside till actually invested in VCUs and they should also be permitted to obtain forward cover as permitted to FIIs.

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