SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, December 4, 1996
SECURITIES AND EXCHANGE BOARD OF INDIA
(VENTURE CAPITAL FUNDS) REGULATIONS, 1996
S.O.850(E).─In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) the Securities and Exchange Board of India hereby, makes the following regulations.
CHAPTER I
PRELIMINARY
Short title and commencement.
1. (1) These regulations may be called the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996.
(2) They shall come into force on the date of their publication in the Official Gazette.
Definitions.
2. In these regulations, unless the context otherwise requires,—
(a) “Act” means the Securities and Exchange Board of India Act, 1992 (15 of 1992);
1[(aa)“associate company”, means a company in which a director or trustee or sponsor or settlor of the venture capital fund or asset management company holds either individually or collectively, equity shares in excess
1 Substituted by the SEBI (Venture Capital Funds) (Second Amendment) Regulations, 2000,
w.e.f. 31-12-2000. Prior to its substitution, clause (aa) as inserted by the SEBI (Venture Capital
Funds) (Second Amendment) Regulations, 2000, w.e.f. 15-09-2000, read as under:
“(aa) ‘associate’ in relation to venture capital fund means a person,-
(i) who, directly or indirectly, by himself, or in combination with relatives, exercises control over the venture capital fund; or
(ii) in respect of whom the venture capital fund, directly or indirectly, by itself, or in combination with other persons, exercises control; or
(iii) whose director, is also a director, of the venture capital fund.”
of 15 per cent of the paid-up equity share capital of venture capital undertaking;]
(b) “certificate” means a certificate of registration granted by the Board under regulation 7;
(c) “company” means a company incorporated under the Companies Act, 1956 (1 of 1956);
(d) “economic offence” means an offence to which the Economic Offences (Limitation of Prosecutions) Act, 1974 (12 of 1974), applies for the time being;
(e) 1[* * *]
2[(ee)“equity linked instruments” includes instruments convertible into equity shares or share warrants, preference shares, debentures compulsorily 3[or optionally] convertible into equity;]
(f) “Form” means any of the forms set out in the First Schedule;
(g) 4[* * *]
(h) 5[“inspecting or investigating officer” means an inspecting or investigating officer appointed by the Board under regulation 25;] 6[(hh)“investible funds” means corpus of the fund net of expenditure for
administration and management of the fund;]
(i) “Schedule” means a Schedule annexed to these regulations;
