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TMI BlogSecurities And Exchange Board Of India (Venture Capital Funds) (Amendment) Regulations, 2000.X X X X Extracts X X X X X X X X Extracts X X X X ..... ture 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." (b) after clause (e), the following clause shall be inserted, namely:- "(ee)' equity linked instruments' includes instruments convertible into equity shares or share warrants, preference shares, debentures compulsorily convertible into equity." (c) clause (g) shall be omitted. (d) for clause (h), the following clause shall be substituted, namely:- "(h)' inspecting or investigating officer' means an inspecting or investigation officer appointed by the Board under regulation 25. (e) after clause (h) the following clause shall be inserted namely:- "(hh) 'investible funds' means corpus of the fund net of expenditure for administration and management of the fund." (f) for clause (j) the following clause shall be substituted, namely:- "(j) 'negative list' means a list of items specified in Third Schedule. (g) for clause (I) the following clause shall be substituted, namely:- "(1) 'unit' means beneficial interest of the investors in the scheme or fund floated by trust or any other securit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following regulation, namely:- "Investment conditions and restrictions 12. All investment made or to be made by a venture capital fund shall be subject to the following conditions, namely:- (a) venture capital fund shall disclose the investment strategy at the time of application for registration; (b) venture capital fund shall not invest more than 25% corpus of the fund in one venture capital undertaking; (c) shall not invest in the associated companies; and (d) venture capital fund shall make investment in the venture capital undertaking as enumerated below: (i) atleast 75% of the investible funds shall be invested in unlisted equity shares or equity linked instruments. Provided that if the venture capital fund seeks to avail of benefits under the relevant provisions of the Income Tax Act applicable to a venture capital fund, it shall be required to disinvest from such investments within a period of one year from the date on which the shares of the venture capital undertaking are listed in a recognised Stock Exchange. (ii) Not more than 25% of the investible funds may be invested by way of: (a) subscription to initial public offer of a venture capital under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the following: "(i) details of the fund manager or asset management company if any, and the fees to be paid to such manager." (ix) after clause (i) the following clauses shall be inserted, namely:- "(j) The details about performance of the fund, if any, managed by the Fund Manager (k) investment strategy of the fund. (l) any other information specified by the Board". (b) sub-regulation (2) shall be omitted. 11. regulation 18 shall be omitted. 12. regulation 19 shall be omitted. 13. in regulation 20, in sub-regulation (1), for the word "ten" the word "eight." shall be substituted. 14. In regulation 21, in sub-regulation (2) for the words "to the Board within fifteen days" the words "within the time specified by the Board" shall be substituted. 15. in regulation 23, - (a) after sub-regulation (2) the following sub-regulation shall be inserted, namely:- "(2A) A venture capital fund set up as a body corporate shall be wound up in accordance with the provisions of the statute under which it is constituted." (b) sub-regulation (3) shall be substituted by the following sub-regulation, namely:- "(3) The trustees or trustee company of the venture capital fund set u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 29, after sub-regulation (2), the following sub-regulation shall be inserted:- "(3) The Board may after consideration of the investigation or inspection report and after giving reasonable opportunity of hearing to the venture capital fund or its trustees, directors issue such direction as it deems fit in the interest of securities market or the investors including directors in the nature of:- (a) requiring a venture capital fund not to launch new schemes or raise money from investors for a particular period; (b) prohibiting the person concerned from disposing of any of the properties of the fund or scheme acquired in violation of these regulations; (c) requiring the person connected to dispose of the assets of the fund or scheme in a manner as may be specified in the directions; (d) requiring the person concerned to refund any money or the assets to the concerned investors along with the requisite interest or otherwise, collected under the scheme; (e) prohibiting the person concerned from operating in the capital market or from accessing the capital market for a specified period. 19. In regulation 30, before the words 'The Board may suspend' the following words sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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