Mohan an investor of Venture Capital Fund (VCF) incorporated and established outside India proposes to make investments in Venture Capital Fund in India. He has sought the guidance of company secretary for grant of certi

The certificate to be granted to the foreign venture capital is subject to the conditions that: it should abide by the provisions of the SEBI Act, 1992 and SEBI (Foreign Venture Capital Investors) Regulation 2000; it should appoint a domestic custodian for purpose of custody of securities; it should enter into arrangement with a designated bank for the purpose of operating a special non-resident rupee or foreign currency account; it should forthwith inform SEBI in writing if any information or particulars previously submitted to SEBI are found to be false or misleading in any material particular or if there is any change in the information already submitted. Investment Criteria for Foreign Venture Capital Investor All investments to be made by a foreign venture capital investors should be subject to the following conditions: It should disclose to SEBI its investment strategy. It can invest its total funds committed in one venture capital fund or alternative investment fund. It shall make investments as enumerated below: atleast 66.67% of the investible funds should be invested in unlisted equity shares or equity linked instruments of venture capital undertaking or investee company. not more than 33.33% of the investible funds may be invested by way of : subscription to initial public offer of a venture capital undertaking or investee company whose shares are proposed to be listed; debt or debt instrument of a venture capital undertaking or investee company in which the foreign venture capital investor has already made an investment by way of equity.