Define briefly the following in context of Indian Equity Private Funding: (a) Hedge Fund (b) SME Fund (c) Corpus (d) Start up (e) Venture Capital Undertaking.
CS Professional · Strategic Management and Corporate Finance · PYQS · June 2025
Define briefly the following in context of Indian Equity Private Funding: (a) Hedge Fund (b) SME Fund (c) Corpus (d) Start up (e) Venture Capital Undertaking.
Answer & Explanation:
(a) "Hedge fund" means an Alternative Investment Fund which employs diverse or complex trading strategies and invests and trades in securities having diverse risks or complex products including listed and unlisted derivatives. (b) "SME fund" means an Alternative Investment Fund which invests primarily in unlisted securities of investee companies which are SMEs or securities of those SMEs which are listed or proposed to be listed on a SME exchange or SME segment of an exchange. (c) "Corpus" means the total amount of funds committed by investors to the Alternative Investment Fund by way of a written contract or any such document as on a particular date. (d) "Start-up" means a private limited company or a limited liability partnership which fulfils the criteria for start-up as specified by the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India or such other policy of the Central Government issued in this regard from time to time. (e) "Venture Capital Undertaking" means a domestic company which is not listed on a recognised stock exchange at the time of making investments.
Topics: Corporate Finance
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