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TMI BlogSecurities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... stment Funds) Regulations, 2012 , I. In regulation 2 , in sub-regulation (1), in clause (z), after the words and symbols an angel fund as defined under Chapter III-A , the words and migrated venture capital fund as defined under Chapter III-D shall be inserted. II. In regulation 3 , in sub-regulation (2), i) in the second proviso, the words and symbols re-registration under these regulations subject to approval of two-thirds of their investors by value of their investment shall be substituted with the words and symbols registration under these regulations as migrated venture capital funds in terms of Chapter III-D, within twelve months from the date of notification of the Securities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2024 . ii) after the second proviso, the following new proviso shall be inserted, namely, Provided further that the Board may specify enhanced regulatory reporting and other measures for the venture capital funds that do not seek registration as a migrated venture capital fund in terms of Chapter III-D. III. After Chapter III-C , the following new chapter shall be inserted, namely, - CHAPTER III-D Definitions. 19V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Board shall consider the following eligibility conditions, namely, (a) the applicant has a certificate of registration as a Venture Capital Fund under Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996; (b) the applicant is a fit and proper person; (c) the applicant has furnished the required information as specified by the Board from time to time; (d) the applicant has no pending investor complaint with regard to non-receipt of funds or securities for any of its schemes whose assets are not liquidated in terms of sub-regulation (2) of regulation 24 of Securities and Exchange Board of India (Venture Capital Funds) Regulations 1996, on the date of application under this Chapter; (e) no scheme launched by the applicant has investment from an investor which is less than five lakh rupees: Provided that nothing contained in clause (e) shall apply to investors who are employees or the principal officer or directors of the venture capital fund or directors of the trustee company or trustees where the venture capital fund has been established as a trust or the employees of the manager or asset management company of the migrated venture capital fund; (f) ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the fund, if any, managed by the Fund Manager; (k) investment strategy of the fund; and (l) any other information specified by the Board. Investment by migrated venture capital fund. 19AD . (1) Investments by migrated venture capital fund shall be subject to the following conditions: (a) the migrated venture capital fund shall not invest more than 25% corpus of the fund in a single venture capital undertaking; (b) the migrated venture capital fund may invest in the securities of companies incorporated outside India 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) The migrated venture capital fund shall not invest in the associated companies; and (d) the migrated venture capital fund shall invest as enumerated below: (i) at least 66.67% of the investable funds shall be invested in unlisted equity shares or equity linked instruments of venture capital undertaking; (ii) not more than 33.33% of the investable funds may be invested by way of: (a) subscription to the initial public offer of a venture capital undertaking whose shares are proposed to be listed; (b) investment in the debt or debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Regulation 29 of these regulations: Provided that sub-regulation (9A) of regulation 29 shall not be applicable to a migrated venture capital fund or the scheme of the migrated venture capital fund. (4) If the assets of a scheme of a venture capital fund registered under the Securities and Exchange Board of India (Venture Capital Regulations) 1996, are not liquidated after the expiry of its tenure in terms of sub-regulation (2) of regulation 24 of Securities and Exchange Board of India (Venture Capital Regulations), 1996 prior to the date of application for registration under this Chapter, and the venture capital fund has been granted registration as a migrated venture capital fund under these regulations, then such schemes of the migrated venture capital fund may be granted additional liquidation period, subject to conditions and in the manner as may be specified by the Board: Provided that the registration as migrated venture capital fund granted under regulation 19X of these regulations and the additional liquidation period granted under sub-regulation (4) of this regulation shall be without prejudice to the issuance of any direction or measures in accordance with the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th January, 2017 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2016 vide No. SEBI/LAD/NRO/GN/2016-17/026. (f) 6th March, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 vide No. SEBI/LAD/NRO/GN/2016-17/037. (g) 1st June, 2018 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2018 vide No. SEBI/LAD/NRO/GN/2018/19. (h) 10th May, 2019 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2019 vide No. SEBI/LAD/NRO/GN/2019/16. (i) 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10. (j) 19th October, 2020 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2020 vide No. SEBI/LAD/NRO/GN/2020/37. (k) 8th January, 2021 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2021 vide No. SEBI/LAD/NRO/GN/2021/01. (l) 5th May, 2021 by the Securities and Exchange Board of India (Al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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