Regulation 4 - Eligibility Criteria. - Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations 2000

6 [ Eligibility Criteria. 4. A designated depository participant shall consider an application for grant of certificate of registration as a foreign venture capital investor if the applicant satisfies all of the following conditions, namely: - (a) the applicant is an entity incorporated or established outside India or in International Financial Services Centre; (b) The applicant is a resident of the country whose securities market regulator is a signatory to the International Organization of Securities Commission s Multilateral Memorandum of Understanding (Appendix A Signatories) or a signatory to a bilateral Memorandum of Understanding with the Board: Provided that an applicant being Government or Government related investor shall be considered as eligible for registration, if such applicant is a resident in the country as may be approved by the Government of India; (c) The applicant being a bank is a resident of a country whose central bank is a member of Bank for International Settlements: Provided that a central bank applicant need not be a member of Bank for International Settlements: Provided further that the condition specified under clause (c) of Regulation 4 shall not apply in case the applicant is regulated by the banking sector regulator in its home jurisdiction even if the central bank of that country is not a member of Bank for International Settlements; (d) The applicant or its beneficial owners identified in accordance with Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, shall not be the person(s) mentioned in the Sanctions List notified from time to time by the United Nations Security Council and is not a resident in the country identified in the public statement of Financial Action Task Force as (i) a jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply; or (ii) a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies; (e) the applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; and (f) any other criteria specified by the Board from time to time. ] ************** NOTES:- 1 Word or omitted by the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2001, w.e.f. 7-6-2001. 2 Word or omitted, ibid. 3 Substituted for venture capital fund , ibid. 4 Inserted by the SEBI(Alternative Investment Funds) Regulations, 2012 w.e.f. May 21, 2013. 5 Word or omitted, ibid. 6. Substituted vide Notification No. SEBI/LAD-NRO/GN/2024/203 dated 04-09-2024 w.e.f. 01-01-2025 before it was read as, Eligibility Criteria. 4. (1) For the purpose of the grant of a certificate to an applicant as a Foreign Venture Capital Investor, the Board shall consider the following conditions for eligibility, namely:- (a) the applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity. (b) Whether the applicant has been granted necessary approval by the Reserve Bank of India for making investments in India; 1 [* * *] (c) whether the applicant is an investment company, investment trust, investment partnership, pension fund, mutual fund, endowment fund, university fund, charitable institution or any other entity incorporated outside India; or (d) whether the applicant is an asset management company, investment manager or investment management company or any other investment vehicle incorporated outside India; 2 [* * *] (e) whether the applicant is authorised to invest in venture capital fund or carry on activity as a 3 [foreign venture capital investors]; 4 [or Alternative Investment Fund] 5 [* * *] (f) whether the applicant is regulated by an appropriate foreign regulatory authority or is an income tax payer; or submits a certificate from its banker of its or its promoter s track record where the applicant is neither a regulated entity nor an income tax payer. (g) the applicant has not been refused a certificate by the Board. (h) whether the applicant is a fit and proper person.