Schedule 07 [See Regulation 5(7)] - Investment by a Foreign Venture Capital Investor (FVCI) - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017

Schedule 7 [See Regulation 5(7)] Investment by a Foreign Venture Capital Investor (FVCI) 1. Investment by Foreign Venture Capital Investor (1) Subject to the terms and conditions as may be laid down by the Reserve Bank, a Foreign Venture Capital Investor (FVCI) may purchase (a) securities, issued by an Indian company engaged in any sector mentioned at para 4 of this Schedule and whose securites are not listed on a recognised stock exchange at the time of issue of the said securities; (b) securities issued by a startup; (c) units of a Venture Capital Fund (VCF) or of a Category I Alternative Investment Fund (Cat-I AIF) or units of a scheme or of a fund set up by a VCF or by a Cat-I AIF. Provided if the investment is in capital instruments, then the sectoral caps, entry routes and attendant conditions shall apply; (2) An FVCI may purchase the securities/ instruments mentioned above either from the issuer of these securities/ instruments or from any person holding these securities/ instruments. The FVCI may invest in securities on a recognized stock exchange subject to the provisions of the Securities and Exchange Board of India (FVCI) Regulations, 2000. (3) The FVCI may acquire, by purchase or otherwise, from, or transfer, by sale or otherwise, to, any person resident in or outside India, any security/ instrument it is allowed to invest in, at a price that is mutually acceptable to the buyer and the seller/ issuer. The FVCI may also receive the proceeds of the liquidation of VCFs or of Cat-I AIFs or of schemes/ funds set up by the VCFs or Cat-I AIFs. 2. Mode of payment (1) The amount of consideration shall be paid as inward remittance from abroad through banking channels or out of funds held in a foreign currency account and/ or a Special Non-Resident Rupee (SNRR) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016. (2) The foreign currency account and SNRR account shall be used only and exclusively for transactions under this Schedule. 3. Remittance of sale/ maturity proceeds The sale/ maturity proceeds (net of taxes) of the securities may be remitted outside India or may be credited to the foreign currency account or a Special Non-resident Rupee Account of the FVCI. 4. List of sectors in which a Foreign Venture Capital Investor is allowed to invest (1) Biotechnology (2) IT related to hardware and software development (3) Nanotechnology (4) Seed research and development (5) Research and development of new chemical entities in pharmaceutical sector (6) Dairy industry (7) Poultry industry (8) Production of bio-fuels (9) Hotel-cum-convention centres with seating capacity of more than three thousand. (10) Infrastructure sector. The term Infrastructure Sector has the same meaning as given in the Harmonised Master List of Infrastructure sub-sectors approved by Government of India vide Notification F. No. 13/06/2009-INF dated March 27, 2012 as amended/ updated.