Investment conditions and restrictions.

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..... investment strategy at the time of application for registration; (b) venture capital fund shall not invest more than 25% corpus of the fund in one venture capital undertaking; 2[(ba)venture capital fund may invest in securities of foreign companies subject to such conditions or guidelines that may be stipulated or issued by the Reserve Bank of India and the Board from time to time.] (c) shall .....

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..... a financially weak company or a sick industrial company whose shares are listed. Explanation 1.-For the purpose of these regulations, a "financially weak company" means a company, which has at the end of the previous financial year accumulated losses, which has resulted in erosion of more than 50% but less than 100% of its networth as at the beginning of the previous financial year; (e) Specia .....

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..... ding financial services; (b) at least 80 percent of funds raised by a venture capital fund shall be invested in:- (i) the equity shares or equity related securities issued by a company whose securities are not listed on any recognised stock exchange: Provided that a venture capital fund may invest in equity shares or equity related securities of a company whose securities are to be listed or .....

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..... -clause (ii),as the case may be. Explanation: For the purposes of this regulation, "funds raised" means the actual monies raised from investors for subscribing to the securities of the venture capital fund and includes monies raised from the author of the trust in case the venture capital fund has been established as a trust but shall not include the paid up capital of the trustee compa .....

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..... equired to disinvest from such investments within a period of one year from the date on which the shares of the venture capital undertaking are listed in a recognized Stock Exchange." 7. Substituted for "25%" by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-2004. 8. Words "subject to lock-in period of one year" omitted by the SEBI (Venture Capital Funds) (Amendment .....

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