how to register as a foreign venture capital investor in india

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  • 1. SECURITIES AND EXCHANGE BOARD OF INDIA INVESTMENT MANAGEMENT DEPARTMENT Division of Funds Venture Capital----------------------------------------------------------------------------------------------------------HOW TO GET REGISTERED AS A FOREIGN VENTURE CAPITAL INVESTOR1. The Applicant is advised to go through the SEBI (Foreign Venture Capital Investors) Regulations, 2000 for checking the eligibility criteria (Reg 4) and such other information while submitting the application to SEBI. The application in Form A as specified in First Schedule to SEBI (Foreign Venture Capital Investors) Regulations, 2000 and other documents should be filed along with requisite fees (Application fees of US $ 2500) as prescribed under Second Schedule to the Regulations.2. The application in Form A along with other documents as enumerated below should be submitted in duplicate. One set of Application along with all the documents is forwarded by SEBI to Reserve Bank of India (RBI) for its approval from FEMA angle.Procedure to be Followed :3. The Applicant should follow the procedure given below so as to expedite the registration process. Normally, all replies are sent within 21working days from the date of getting each communication from the applicant during the process of registration. Thus, the total time period for registration depends on how fast the requirements are complied with by the applicant.4. The following are the main requirements under SEBI (Foreign Venture Capital Investors) Regulations, 2000: 1. While filling the Form A please ensure the following. a) Details about the sponsor/group to which the applicant belongs. In Form A under pt 3 (c), the applicant should disclose the details pertaining to the sponsor or the group to which it belongs. Also disclose the experience, approximate funds being managed by the sponsor/group, the registration particulars with any regulatory agency abroad, along with website details, if
  • 2. any, etc. b) Details about designated bank branch and Custodian. Please ensure that the applicant appoints a designated bank and a SEBI registered Custodian. Also enclose a copy of Letter from the Custodian in support of Reg. 8(b). c) Other Documents as prescribed in Form A: i. Copy of certificate of registration with home regulator; or ii. Copy of income tax return filed in the home country; or iii. Copy of bankers certificate fair track record of the applicant2. Apart from the above, the applicant has to submit the following documents/ details/declarations in support of registration. a) Contact Person details along with name, address, contact no. and email ID. b) Details of all the directors along with name, address, proof of identity, proof of address, contact no and email ID. c) Copy of Memorandum and Articles of Association/Constitution Document of the applicant. Please ensure that the main objects permit the applicant to carry on the activity of venture capital. d) Structure Diagram of the Applicant. e) State whether the applicant or any of its directors has not been refused a certificate by the SEBI Board. f) State whether the applicant is registered with SEBI or any other regulatory authority in any capacity in India or has filed for registration with SEBI in any other capacity. g) Write up on Directors/Key personnel of the FVCI. The write up should include the educational qualifications, the past experiences etc. h) Disclose the investment strategy as required under Regulation 11(a) of the SEBI (Foreign Venture Capital Investors) Regulations, 2000. The Investment strategy should disclose the sectors for investment and the approximate amount proposed to be invested in India along with the Life cycle of the Fund. i) Declaration that the foreign venture capital investor will not make investment in any area listed under Third Schedule to SEBI (Foreign Venture Capital
  • 3. Investors) Regulations, 2000. j) Declaration in respect of Fit and Proper Person criteria as per regulation 4 A of the SEBI (Foreign Venture Capital Investors) Regulation, 2000 and as specified under Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulation, 2008. 5. Grant of Certificate of Registration Once all above requirements have been complied with including the Fit and Proper Person Regulations, 2004 and necessary approvals have been granted by RBI, SEBI will issue a letter stating the same and on payment of requisite fees (registration fees of US $ 20,000) as per Second Schedule to Regulations, SEBI will grant a certification of registration as a Foreign Venture Capital Investor.Please note the following: Application (in 2 sets) which is incomplete or without the necessary documents/ information/declarations would not be accepted and they would be treated as not filed. However, an intimation to this effect will be addressed to the applicant within reasonable period of time. Applications involving policy decisions or other considerations, might get delayed in processing and in getting registration approvals. Documents/annexures submitted along with the application need to be numbered and duly signed. In case of an Authorized signatory, please submit an authorization letter from the Directors of the Fund. The application in Form A along with all the necessary information as enumerated above will be addressed to The DGM, Division of Funds-Venture Capital, Investment Management Department, and forwarded to our T&A Division, SEBI, Plot No. C4-A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051. Such applications will be submitted along with the demand draft of US $ 5000 towards application fees paid in favour of SEBI, Mumbai.
  • 4. FIRST SCHEDULE FORM A SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN VENTURE CAPITAL INVESTORS) REGULATIONS, 2000 (REGULATION 3) APPLICATION FORM FOR GRANT OF CERTIFICATE OF REGISTRATION AS FOREIGN VENTURE CAPITAL INVESTOR WITH THE SECURITIES AND EXCHANGE BOARD OF INDIA SECURITIES AND EXCHANGE BOARD OF INDIA Plot No. C4-A, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI 400051 INDIA1. Name, address, telephone no., telex no. and fax no. of the applicant. In case the applicant has a representative office in India, the particulars may also be given for that office.2. Please indicate whether the applicant belongs to any one or more of the following categories: Pension Fund, Mutual Fund, Investment Trust, Investment company, Investment trust, Investment partnership, Asset Management Company, Investment manager, Investment Management Company, Endowment fund, University fund, Charitable institutions or any other investment vehicle incorporated and established outside India3. a) The date and place of incorporation of the applicant. (Details of statute under which incorporated). b) Brief description of the principal activities of the applicant and the year of commencement of such activities. c) Brief description of the group, if any, to which the applicant belongs.4. Whether any of the following documents are submitted? i. Copy of certificate of registration with home regulator; or ii. Copy of income tax return filed in the home country; or iii. Copy of bankers certificate fair track record of the applicant5. Please also state whether there has been any instance of violation or non-adherence to the securities laws, code of ethics/conduct, code of business rules, for which the applicant, or its parent/ holding company or affiliate may have been subjected to economic, or criminal liability or suspended from carrying out its operations, or the
  • 5. registration has been revoked, temporarily or permanently. If no, submit an undertaking.6. Please indicate the names of the clients on whose behalf you propose to invest in India.7. Please indicate the manner in which you propose to conduct your investments in India i.e. whether through an establishment in India or through any other office outside India. Please give details, and also the name of the contact person/compliance officer.8. Name and address of the designated bank branch in India through whom investment is proposed to be made.9. a) Name, address, telephone no., telex no., and fax no. of the domestic custodian. Please also present the background information on the custodian, including volume of business handled, organisational infrastructure and the number of investment companies for which the domestic custodian is acting, or has acted, as custodian. b) Particulars of the agreement entered into with the domestic custodian.We hereby agree and declare that the information supplied in the application, including theattachment sheets, is complete and true.AND we further agree that we will immediately notify the Securities and Exchange Board ofIndia

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