SEBI to facilitate quick registration of venture capital funds

13 Apr 2007

Mumbai: The Securities and Exchange Board of India (SEBI) will respond to applications for registration of venture capital funds (VCFs) or foreign venture capital investors (FVCI) within 21 days, the market regulator said in directions issued to investors.

SEBI said applications for VCF or FVCI should be accompanied by all necessary documents and a fee of Rs100,000.

A fee of $5,000 should accompany the application for registration of an entity as FVCI. The registration fee would be Rs10 lakh for VCF and $20,000 FVCI, SEBI said.

An entity seeking registration as FVCI would, in addition to other documents, have to submit copies of certificate of registration with the home regulator, income tax return field in the home country and a banker''s certificate of fair track record.

The documents should be in conformity with SEBI (Foreign Venture Capital Investors) Regulations, 2000.

In case of VCFs, the applicants have been advised to follow the procedure prescribed by the Sebi (Venture Capital Funds) Regulations, 1996.

VCF applicants are also required to submit copies of memorandum and articles of association, registered trust deed in case of a trust and investment management agreement, as applicable, along with the application form.

Both the categories of investors are also required to disclose investment strategy along with the life cycle of the fund, Sebi said.

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