Regulation 2 - Definitions. - SECURITIES AND EXCHANGE BOARD OF INDIA (VENTURE CAPITAL FUNDS) REGULATIONS, 1996

2. Definitions. In these regulations, unless the context otherwise requires,- (a) Act means the Securities and Exchange Board of India Act, 1992 (15 of 1992); 1 [(aa) associate company , means a company in which a director or trustee or sponsor or settler of the venture capital fund or asset management company holds either individually or collectively, equity shares in excess of 15 % of the paid-up equity share capital of venture capital undertaking;] (b) certificate means a certificate of registration granted by the Board under regulation 7; (c) company means a company incorporated under the Companies Act, 1956 (1 of 1956); (d) economic offence means an offence to which the Economic Offences (Limitation of Prosecutions) Act, 1974 (12 of 1974), applies for the time being; (e) 2 [* * *] 3 [(ee) equity linked instruments includes instruments convertible into equity shares or share warrants, preference shares, debentures compulsorily 4 [or optionally] convertible into equity;] (f) Form means any of the forms set out in the First Schedule; (g) 5 [* * *] (h) 6 [ inspecting or investigating officer means an inspecting or investigation officer appointed by the Board under regulation 25;] 7 [(hh) investible funds means corpus of the fund net of expenditure for administration and management of the fund;] (i) Schedule means a Schedule annexed to these regulations; 8 [(j) negative list means a list of items specified in the Third Schedule;] (k) trust means a trust established under the Indian Trusts Act, 1882 (2 of 1882) 9 [or under an Act of Parliament or State Legislation]; (l) 10 [ unit means beneficial interest of the investors in the scheme or fund floated by trust or 11 [shares] issued by a company including a body corporate; (m) venture capital fund means a fund established in the form of a trust or a company including a body corporate and registered under these regulation which- (i) has a dedicated pool of capital; (ii) raised in a manner specified in the regulations, and (iii) invests 12 [* * *] in accordance with the regulations;] 13 [(ma) a foreign company means a foreign company within the meaning of section 591 of the Companies Act, 1956;] 14 [(n) venture capital undertaking means a domestic company- (i) whose shares are not listed on a recognized stock exchange in India; (ii) which is engaged in the business for providing services, production or manufacture of article or things or does not include such activities or sectors which are specified in the negative list by the Board with the approval of the Central Government by notification in the Official Gazette in this behalf.] ------------------ Notes: 1. Substituted by the SEBI (Venture Capital Funds) (Second Amendment) Regulations, 2000, w.e.f. 30-12- 2000. Prior to its substitution, clause (aa) was inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000, read as under: (aa) associate in relation to venture capital fund means a person,- (i) who, directly or indirectly, by himself, or in combination with relatives, exercises control over the venture capital fund; or (ii) in respect of whom the venture capital fund, directly or indirectly, by itself, or in combination with other persons, exercises control; or (iii) whose director, is also a director, of the venture capital fund. 2. Omitted by SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002, w.e.f. 27-09-2002. Prior to its omission, clause (e) read as under: (e) enquiry officer means an enquiry officer appointed by the Board under regulations 33; 3. Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000. 4. Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-2004. 5. Omitted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000. Prior to its omission, clause (g) read as under: (g) Government of India Guidelines means the guidelines dated September 20, 1995 issued by the Government of India for Overseas Venture Capital Investments in India as amended from time to time. 6. Substituted, ibid. Prior to substitution, clause (h) read as under: (h) inspecting officer means an inspecting officer appointed by the board under regulations 25; 7. Inserted, ibid. 8. Substituted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000. Prior to substitution, clause (j) read as under: (j) sick industrial company has the same meaning as is assigned to it in clause (o) of sub-section (1) of section (3) of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986); 9. Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 1999, w.e.f. 17-11-1999. 10. Substituted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000. Prior to substitution, clause (l) and (m) read as under: (l) units means the interest of the investors in a scheme of a venture capital fund set up as a trust, which consist of each unit representing one undivided share in the assets of the scheme; (m) venture capital fund means a fund established in the form of a company or trust which raises monies through loans, donations, issue of securities or units as the case may be, and makes or proposes to make investments in accordance with these regulations. 11. Substituted for any other securities by the SEBI (Venture Capital Funds) (Second Amendment) Regulations, 2000, w.e.f. 30-12-2000. 12. Words in venture capital undertaking omitted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-2004. 13. Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2006, w.e.f. 25-01-2006. 14. Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000.