BANKING AFFAIRS

Detailed explanation-1: -Now, let us discuss about, How to get registration for a venture capital fund. Application along with all the required documents has to be send to SEBI in Form A by the Applicant. Applicant will receive the reply from SEBI within 21 working days on receipt of Application.

Detailed explanation-2: -It may be mentioned that Government of India Guidelines were framed on September 20, 1995 and SEBI regulations were framed in 1996 pursuant to the amendment in the SEBI Act in 1995 giving SEBI the mandate to frame regulations for venture capital funds.

Detailed explanation-3: -Because most venture capital funds are exempt from SEC registration, regulatory oversight is applied to the fund manager, also known as the fund’s investment adviser. Before the passage of the Dodd-Frank Act, most private fund advisers were exempt from SEC registration.

Detailed explanation-4: -The lifespan of a VCF is typically 10 years. There are about 185 such old VCF schemes which are registered under the erstwhile Sebi VCF Regulations of 1996. These entities have to share the information with Sebi’s supervision, enforcement and compliance division for AIFs and foreign portfolio investors (FPIs).

Detailed explanation-5: -Like other countries, the concept of venture capital is defined in a broad manner in India under the SEBI Regulations: ‘Venture capital fund’ means a fund established in the form of a trust or a company including a body corporate and registered under these regulations which-i. has a dedicated pool of capital, ii.