Regulation 23 - Winding-up. - Securities And Exchange Board of India (Venture Capital Funds) Regulations, 1996

Winding-up. 23. (1) A scheme of a venture capital fund set up as a trust shall be wound up, (a) when the period of the scheme, if any, mentioned in the placement memorandum is over; (b) if it is the opinion of the trustees or the trustee company, as the case may be, that the scheme shall be wound up in the interests of investors in the units; (c) if seventy-five per cent of the investors in the scheme pass a resolution at a meeting of unit holders that the scheme be wound up; or (d) if the Board so directs in the interests of investors. (2) A venture capital fund set up as a company shall be wound up in accordance with the provisions of the Companies Act, 1956 (1 of 1956). 1 [(2A) A venture capital fund set up as a body corporate shall be wound up in accordance with the provisions of the statute under which it is constituted.] 2 [(3) The trustees or trustee company of the venture capital fund set up as a trust or the Board of Directors in the case of the venture capital fund is set up as a company (including body corporate) shall intimate the Board and investors of the circumstances leading to the winding up of the Fund or Scheme under sub-regulation (1).] --------------- Notes: 1 . Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-2000. 2 . Substituted, ibid. Prior to the substitution Sub-regulation (3) read as under: The trustees or trustee company of the venture capital fund set up as a trust shall intimate the Board and investors of the circumstances leading to the winding up of the scheme under sub-regulation (1).