Text read out of this file
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SECURITIES AND EXCHANGE BOARD OF INDIA
(VENTURE CAPITAL FUNDS) REGULATIONS, 1996
CONTENTS
Chapter I: Preliminary
1. Short title and commencement
2. Definitions
Chapter II: Registration of Venture Capital Funds
3. Application for grant of certificate
4. Eligibility criteria
4A. Criteria for fit and proper person
5. Furnishing of information, clarification
6. Consideration of application
7. Procedure for grant of certificate
8. Conditions of certificate
9. Procedure where certificate is not granted
10. Effect of refusal to grant certificate
Chapter III: Investment Conditions and Restrictions
11. Minimum investment in a venture capital fund
12. Investment conditions and restrictions
13. Prohibition on listing
Chapter IV: General Obligations and Responsibilities
14. Prohibition on inviting subscription from the public
15. Private placement
16. Placement memorandum or subscription agreement
17. Contents of placement memorandum
18. [Omitted]
19. [Omitted]
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20. Maintenance of books and records
21. Power to call for information
22. Submissions of reports to the Board
23. Winding up
24. Effect of winding up
Chapter V: Inspection and Investigation
25. Board's right to inspect or investigate
26. Notice before inspection or investigation
27. Obligation of venture capital fund on inspection or investigation
28. Submission of Report to the Board
29. Communication of findings etc. to the venture capital fund
Chapter VI: Procedure for Action in Case of Default
30. Liability for action in case of default
31. [Omitted]
32. [Omitted]
33. [Omitted]
34. [Omitted]
35. [Omitted]
36. [Omitted]
37. [Omitted]
38. [Omitted]
First Schedule: Forms
Form A: Application for Grant of Certificate of Registration as Venture
Capital Fund
Form B: Certificate of Registration as Venture Capital Fund
Second Schedule: Fees
Third Schedule: Negative List
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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.”
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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;
1 Omitted by SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty)
Regulations, 2002, w.e.f. 27-09-2002. Prior to its omission, clause (e) read as under:
‘(e) ”Enquiry Officer” means an enquiry officer appointed by the Board under regulations
33;”
2 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000.
3 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 05-04-
2004.
4 Omitted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000. Prior to its omission, clause (g) read as under:
‘(g) “Government of India guidelines” means the guidelines dated Septemeber 20, 1995
issued by the Government of India for Overseas Venture Capital Investments in India as
amended from time to time.’
5 Substituted, ibid. Prior to substitution, clause (h) read as under:
‘(h) “inspecting officer” means an inspecting officer appointed by the board under
regulations 25;’
6 Inserted, ibid.
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1[(j) “negative list” means a list of items specified in the Third Schedule;]
(k) “trust” means a trust established under the Indian Trusts Act, 1882 (2 of
1882) 2[or under an Act of Parliament or State Legislation];
(l)
3[“unit” means beneficial interest of the investors in the scheme or fund
floated by trust or 4[shares] issued by a company including a body
corporate;
(m) “venture capital fund” means a fund established in the form of a trust or a
company including a body corporate and registered under these
regulation which—
(i) has a dedicated pool of capital;
(ii) raised in a manner specified in the regulations; and
(iii) invests 5[* * *] in accordance with the regulations;]
6[(ma)“a foreign company” means a foreign company within the meaning of
section 591 of the Companies Act, 1956;]
7[(n) “venture capital undertaking” means a domestic company—
(i) whose shares are not listed on a recognized stock exchange in India;
(ii) which is engaged in the business for providing services, production
or manufacture of article or things or does not include such activities
1 Substituted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000. Prior to substitution, clause (j) read as under:
‘(j) “sick industrial company” has the same meaning as is assigned to it in clause (o) of
sub-section (1) of section (3) of the Sick Industrial Companies (Special Provisions) Act, 1985 (1
of 1986);”
2 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 1999, w.e.f. 17-11-
1999.
3 Substituted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000. Prior to substitution, clause (l) and (m) read as under:
‘(l) “units” means the interest of the investors in a scheme of a venture capital fund set up
as a trust, which consist of each unit representing one undivided share in the assets of the
scheme;
(m) “venture capital fund” means a fund established in the form of a company or trust
which raises monies through loans, donations, issue of securities or units as the case may be,
and makes or proposes to make investments in accordance with these regulations.’
4 Substituted for “any other securities” by the SEBI (Venture Capital Funds) Amendment
Regulations, 2000, w.e.f. 30-12-2000.
5 Words “in venture capital undertaking” omitted by the SEBI (Venture Capital Funds)
Amendment Regulations, 2004, w.e.f. 05-04-2004.
6 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2006, w.e.f. 25-01-
2006.
7 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000.
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or sectors which are specified in the negative list by the Board with
the approval of the Central Government by notification in the Official
Gazette in this behalf.]
CHAPTER II
REGISTRATION OF VENTURE CAPITAL FUNDS
Application for Grant of Certificate.
3. (1) Any company or trust 1[or a body corporate] proposing to carry on any
activity as a venture capital fund on or after the commencement of these
regulations shall make an application to the Board for grant of a certificate.
(2) Any company or trust 2[or a body corporate], who on the date of
commencement of these regulations is carrying any activity as a venture capital
fund without a certificate shall make an application to the Board for grant of a
certificate within a period of three months from the date of such commencement:
Provided that the Board, in special cases, may extend the said period upto a
maximum of six months from the date of such commencement.
(3) An application for grant of certificate under sub-regulation (1) or sub-
regulation (2) shall be made to the Board in Form A and shall be accompanied by
a nonrefundable application fee as specified in Part A of the Second Schedule to
be paid in the manner specified in Part B thereof.
(4) Any company or trust 3[or a body corporate] referred to in sub-regulation (2)
who fails to make an application for grant of a certificate within the period
specified therein shall cease to carry on any activity as a venture capital fund.
(5) The Board may in the interest of the investors issue directions with regard to
the transfer of records, documents or securities or disposal of investments
relating to its activities as a venture capital fund.
1 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000.
2 Inserted, ibid.
3 Inserted, ibid.
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(6) The Board may in order to protect the interests of investors appoint any
person to take charge of records, documents, securities and for this purpose also
determine the terms and conditions of such an appointment.
Eligibility Criteria.
4. For the purpose of the grant of a certificate by the Board the applicant shall
have to fulfil in particular the following conditions, namely:—
(a) if the application is made by a company :—
(i) memorandum of association as has its main objective, the carrying on
of the activity of a venture capital fund;
(ii) it is prohibited by its memorandum and articles of association from
making an invitation to the public to subscribe to its securities;
(iii) its director or principal officer or employee is not involved in any
litigation connected with the securities market which may have an
adverse bearing on the business of the applicant;
(iv) its director, principal officer or employee has not at any time been
convicted of any offence involving moral turpitude or any economic
offence;
1[(v)it is a fit and proper person;]
(b) if the application is made by a trust—
(i) the instrument of trust is in the form of a deed and has been duly
registered under the provisions of the Indian Registration Act, 1908 (16
of 1908);
(ii) the main object of the trust is to carry on the activity of a venture
capital fund;
(iii) the directors of its trustee company, if any or any trustee is not
involved in any litigation connected with the securities market which
may have an adverse bearing on the business of the applicant;
1 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 1998, w.e.f. 05-01-
1998.
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(iv) the directors of its trustee company, if any, or a trustee has not at any
time, been convicted of any offence involving moral turpitude or of any
economic offence;
1[(v)the applicant is a fit and proper person;]
2[(c) if the application is made by a body corporate—
(i) it is set up or established under the laws of the Central or State
Legislature,
(ii) the applicant is permitted to carry on the activities of a venture capital
fund,
(iii) the applicant is a fit and proper person,
(iv) the directors or the trustees, as the case may be, of such body
corporate have not been convicted of any offence involving moral
turpitude or of any economic offence,
(v) the directors or the trustees, as the case may be, of such body
corporate, if any, are not involved in any litigation connected with the
securities market which may have an adverse bearing on the business
of the applicant;]
3[(d)] 4[the applicant] has not been refused a certificate by the Board or its
certificate has 5[not] been suspended under regulation 30 or cancelled
under regulation 31.
1 Inserted, ibid.
2 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 1999, w.e.f. 17-11-
1999.
3 Renumbered by the SEBI (Venture Capital Funds) Amendment Regulations, 1999, w.e.f. 17-
11-1999.
4 Substituted for “a company or trust” by the SEBI (Venture Capital Funds) (Amendment)
Regulations, 2000, w.e.f. 15-09-2000.
5 Inserted by the SEBI (Venture Capital Funds) (Second Amendment) Regulations, 2000, w.e.f.
30-12-2000.
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1[Criteria for fit and proper person.
4A. For the purposes of determining whether an application or the venture capital
fund is a fit and proper person the Board may take into account the criteria
specified in Schedule II of the Securities and Exchange Board of India
(Intermediaries) Regulations, 2008.]
Furnishing of information, clarification.
5. The Board may require the applicant to furnish such further information as it
may consider necessary.
Consideration of application.
6. An application which is not complete in all respects shall be rejected by the
Board:
Provided that, before rejecting any such application, the applicant shall be
given an opportunity to remove, within thirty days of the date of receipt of
communication, the objections indicated by the Board:
Provided further that the Board may, on being satisfied that it is necessary to
extend the period specified in the first proviso, extend such period by such further
time not exceeding ninety days.
Procedure for grant of certificate.
7. (1) If the Board is satisfied that the applicant is eligible for the grant of
certificate, it shall send an intimation to the applicant.
(2) On receipt of intimation, the applicant shall pay to the Board, the registration
fee specified in Part A of the Second Schedule in the manner specified in Part B
thereof.
(3) The Board shall on receipt of the registration fee grant a certificate of
registration in Form B.
1 Substituted by the SEBI (Intermediaries) Regulations, 2008, w.e.f. 26-5-2008. Prior to its
substitution, regulations 4A as inserted by the SEBI (Criteria for Fit and Proper Person)
Regulations, 2004, w.e.f. 10-3-2004, read as under:
“4A. Applicability of Securities and Exchange Board of India (Criteria for Fit and Proper
Person) Regulations, 2004.─The provisions of the Securities and Exchange Board of India
(Criteria for Fit and Proper Person) Regulations, 2004 shall, as far as may be, apply to all
applicants or the venture capital funds under these regulations.”
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Conditions of certificate.
8. The certificate granted under regulation 7 shall be inter alia, subject to the
following conditions, namely:—
(a) the venture capital fund shall abide by the provisions of the Act 1[* * *] and
these regulations;
(b) the venture capital fund shall not carry on any other activity other than that
of a venture capital fund;
(c) the venture capital fund shall forthwith inform the Board in writing if any
information or particulars previously submitted to the Board are found to
be false or misleading in any material particular or if there is any change in
the information already submitted.
Procedure where certificate is not granted.
9. (1) After considering an application made under regulation 3, if the Board is of
the opinion that a certificate should not be granted, it may reject the application
after giving the applicant a reasonable opportunity of being heard.
(2) The decision of the Board to reject the application shall be communicated to
the applicant within thirty days.
Effect of refusal to grant certificate.
10. (1) Any applicant whose application has been rejected under regulation 9
shall not carry on any activity as a venture capital fund.
(2) Any company or trust 2[or a body corporate] referred to in sub-regulation (2) of
regulation 3, whose application for grant of certificate has been rejected under
regulation 9 by the Board shall, on and from the date of the receipt of the
communication under sub-regulation (2) of regulation 9, cease to carry on any
activity as a venture capital fund.
1 Words “the Government of India Guidelines” omitted by the SEBI (Venture Capital Funds)
(Amendment) Regulations, 2000, w.e.f. 15-09-2000.
2 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
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(3) The Board may in the interest of the investors issue directions with regard to
the transfer of records, documents or securities or disposal of investments
relating to its activities as a venture capital fund.
(4) The Board may in order to protect the interests of the investors appoint any
person to take charge of records, documents, securities and for this purpose also
determine the terms and conditions of such an appointment.
CHAPTER III
INVESTMENT CONDITIONS AND RESTRICTIONS
Minimum investment in a Venture Capital Fund.
11. (1) A venture capital fund may raise monies from any investor whether
Indian, Foreign or non-resident Indian 1[by way of issue of units].
(2) No venture capital fund set up as a company or any scheme of a venture
capital fund set up as a trust shall accept any investment from any investor which
is less than five lakh rupees:
Provided that nothing contained in sub-regulation (2) shall apply to investors
who are,—
(a) 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;
2[(b) the employees of the fund manager or asset management company; or]
(c) 3[***]
4[(3) Each scheme launched or fund set up by a venture capital fund shall have
firm commitment from the investors for contribution of an amount of at least
rupees five crores before the start of operations by the venture capital fund.]
1 Inserted by the SEBI (Venture Capital Funds) Amendment Regulations, 2000, w.e.f. 15-09-
2000.
2 Substituted, ibid. Prior to the substitution, sub-clause (b) read as under:
“(b) non resident Indians; or”
3 Omitted, ibid. Prior to the omission, sub-clause (c) read as under:
“(c) persons or institutions of foreign origin”.
4 Inserted, ibid.
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1[Investment conditions and restrictions.
12. All investment made or to be made by a venture capital fund shall be subject
to the following conditions, namely:—
(a) venture capital fund shall disclose the 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 not invest in the associated companies; and
(d) venture capital fund shall make investment 3[* * *] as enumerated below:
1 Substituted, ibid. Prior to the substitution, Regulation 12 read as under:
“12. Restrictions on investment by a venture capital fund-All investments made or to be
made by a venture capital fund shall be subject to the following restrictions:
(a) the venture capital fund shall not invest in the equity shares of any company or institution
providing 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 are listed where the
venture capital fund has made these investments through private placements prior to
the listing of the securities.
(ii) the equity shares or equity related securities of a financially weak company or a sick
industrial company, whose securities may or may not be listed on any recognised
stock-exchange.
Explanation: For the purposes of this regulation, 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.
(iii) providing financial assistance in any other manner to companies in whose equity
shares the venture capital fund has invested under sub-clause (i) or sub-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 company, if any".
2 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2006, w.e.f. 25-01-
2006.
3 Words “in venture capital undertaking” omitted by the SEBI (Venture Capital Funds)
(Amendment) Regulations, 2004, w.e.f. 05-04-2004.
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(i) at least 1[66.67%] of the investible funds shall be invested in unlisted
equity shares or equity linked instruments
2[of venture capital
undertaking]. 3[***]
(ii) Not more than 4[33.33%] of the investible funds may be invested by
way of:
(a) subscription to initial public offer of a venture capital undertaking
whose shares are proposed to be listed 5[***];
(b) debt or debt instrument of a venture capital undertaking in which
the venture capital fund has already made an investment by way of
equity.]
6[(c)preferential allotment of equity shares of a listed company subject
to lock in period of one year;
(d) the equity shares or equity linked instruments of 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) Special Purpose Vehicles which are created by a venture capital
fund for the purpose of facilitating or promoting investment in
accordance with these Regulations.
1 Substituted for “75 %” by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004,
w.e.f. 05-04-2004.
2 Inserted, ibid.
3 Proviso omitted by the SEBI (Venture Capital Funds) (Second Amendment) Regulations, 2000,
w.e.f. 30-12-2000. Prior to omission, the proviso read as under:
“Provided that if the venture capital fund seeks to avail of benefits under the relevant
provisions of the Income Tax Act applicable to a venture capital fund, it shall be required 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.”
4 Substituted for “25%” by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004,
w.e.f. 05-04-2004.
5 Words “subject to lock-in period of one year” omitted by the SEBI (Venture Capital Funds)
(Amendment) Regulations, 2004, w.e.f. 05-04-2004.
6 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-
2004.
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Explanation.—The
investment
conditions
and
restrictions
stipulated in clause (d) of regulation 12 shall be achieved by the
venture capital fund by the end of its life cycle;]
1[(e) venture capital fund shall disclose the duration of life cycle of the fund.]
Prohibition on listing.
13. 2[No venture capital fund shall be entitled to get its units listed on any
recognised stock exchange till the expiry of three years from the date of the
issuance of units by the venture capital fund.]
CHAPTER IV
GENERAL OBLIGATIONS AND RESPONSIBILITIES
Prohibition on inviting subscription from the public.
14. No venture capital fund shall issue any document or advertisement inviting
offers from the public for the subscription or purchase of any of its 3[* * *] units.
Private placement.
15. A venture capital fund may receive monies for investment in the venture
capital fund 4[only] through private placement of its 5[***] units.
1 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-
2004.
2 Substituted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000. Prior to its substitution, regulation 13 read as under:
“No venture capital fund shall be entitled to get its securities or units, as the case may be,
listed on any recognized stock exchange till the expiry of three years from the date of the
issuance of securities or units, as the case may be, by the venture capital fund.”
3 Words “securities or”, omitted by the SEBI (Venture Capital Funds) (Second Amendment)
Regulations, 2000, w.e.f. 30-12-2000.
4 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
5 Words “securities or”, omitted by the SEBI (Venture Capital Funds) (Second Amendment)
Regulations, 2000, w.e.f. 30-12-2000.
Page 15 of 29
1[Placement memorandum or subscription agreement.
16. (1) The venture capital fund shall—
(a) issue a placement memorandum which shall contain details of the terms
and conditions subject to which monies are proposed to be raised from
investors; or
(b) enter into contribution or subscription agreement with the investors which
shall specify the terms and conditions subject to which monies are
proposed to be raised.
(2) The Venture Capital Fund shall file with the Board for information, the copy of
the placement memorandum or the copy of the contribution or subscription
agreement entered with the investors along with a report of money actually
collected from the investor.]
Contents of placement memorandum.
17. (1) The placement memorandum 2[or the subscription agreement with
investors] referred to in sub-regulation (1) of regulation 16 shall contain the
following, namely:—
(a) details of the trustees or trustee company 3[and the directors or chief
executives] of the venture capital fund;
4[(b) (i) the proposed corpus of the fund and the minimum amount to be
raised for the fund to be operational;
1 Substituted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000. Prior to its substitution, Regulation 16 read as under:
“(1) The venture capital fund established as a trust shall, before issuing any units file with
the Board a placement memorandum which shall give details of the terms subject to which
monies are proposed to be raised from investors.
(2) A venture capital fund established as a company shall, before making an offer inviting any
subscription to its securities, file with the Board a placement memorandum which shall give
details of the terms subject to which monies are proposed to be raised from the investors.”
2 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
3 Inserted, ibid.
4 Substituted, ibid. Prior to the substitution, sub-clause (b) read as under:
“details of entitlement on the units of the trust for which subscription is being sought;”
Page 16 of 29
(ii) the minimum amount to be raised for each scheme and the provision
for refund of monies to investor in the event of non-receipt of minimum
amount;
(c) details of entitlements on the 1[* * *] units of venture capital fund for which
subscription is being sought;]
(d) tax implications that are likely to apply to investors;
(e) manner of subscription to the units 2[3[* * *] of the venture capital fund];
(f) the period of maturity, if any, of the 4[fund];
(g) the manner, if any, in which the 5[fund shall] be wound up;
(h) the manner in which the benefits accruing to investors in the units of the
trust are to be distributed;
6[(i)details of the fund manager or asset management company if any, and
the fees to be paid to such manager;]
7[(j)the details about performance of the fund, if any, managed by the Fund
Manager;
(k) investment strategy of the fund;
(l) any other information specified by the Board.]
(2) 8[* * *]
1 Words “securities including” omitted by the SEBI (Venture Capital Funds) (Second Amendment)
Regulations, 2000, w.e.f. 30-12-2000.
2 Substituted for “of the trust” by the by the SEBI (Venture Capital Funds) (Amendment)
Regulations, 2000, w.e.f. 15-09-2000.
3 Omitted the words “or securities” by the SEBI (Venture Capital Funds) (Second Amendment)
Regulations, 2000, w.e.f. 30-12-2000.
4 Substituted for “scheme” by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000,
w.e.f. 15-09-2000.
5 Substituted for “scheme is to” ibid.
6 Substituted ibid. Prior to the substitution, sub-clause (i) read as under:
“details of the asset management company, if any, and of fees to be paid to be paid to
such a company.”
7 Inserted, ibid.
8 Omitted, ibid. Prior to the omission, sub-regulation (2) read as under:
“(2) The placement memorandum referred to in sub-regulation (2) of regulation 16 shall
contain the following, namely:-
(a) details of the securities that are being offered;
(b) details of investments that are proposed to be made;
(c) details of directors of the company;
(d) tax implications that are likely to apply to investors;
(e) manner of subscription to the securities that are to be issued;
Page 17 of 29
Circulation of placement memorandum.
18. 1[* * *]
Changes in the placement memorandum to be intimated to the board.
19. 2[* * *]
Maintenance of books and records.
20. (1) Every venture capital fund shall maintain for a period of 3[eight] years
books of account, records and documents which shall give a true and fair picture
of the state of affairs of the venture capital fund.
(2) Every venture capital fund shall intimate the Board, in writing, the place where
the books, records and documents referred to in sub-regulation (1) are being
maintained.
(f) manner in which the benefits accruing to investors in the securities are to be
distributed; and
(g) details of the asset management company, if any, and of fees to be paid to such a
company”
1 Omitted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000. Prior to the omission Regulation 18 read as under:
“The placement memorandum referred to in regulation 16 may be issued for private
circulation only after the expiry of twenty one days of its submission to the Board:
Provided that if, within twenty one days of submission of the placement memorandum,
the Board communicates any amendments to the placement memorandum, the venture capital
fund shall carry out such amendments in the placement memorandum before such
memorandum is circulated to the investors.”
2 Omitted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000. Prior to the omission, Regulation 19 read as under:
“19. Amendments or changes to any placement memorandum already filed with the
Board can be made only if, -
(a) a copy of the placement memorandum indicating the changes is filed with the Board;
and
(b) within twenty one days of such filing, the Board has not communicated any objections
or observations on the said amendments or changes.”
3 Substituted for “ten”, ibid.
Page 18 of 29
Power to call for information.
21. (1) The Board may at any time call for any information from a venture capital
fund with respect to any matter relating to its activity as a venture capital fund.
(2) Where any information is called for under sub-regulation (1) it shall be
furnished 1[within the time specified by the Board].
Submission of reports to the Board.
22. The Board may at any time call upon the venture capital fund to file such
reports as the Board may desire with regard to the activities carried on by the
venture capital fund.
Winding-up.
23. (1) A scheme of a venture capital fund set up as a trust shall be wound up,
(a) when the period of the scheme, if any, mentioned in the placement
memorandum is over;
(b) if it is the opinion of the trustees or the trustee company, as the case may
be, that the scheme shall be wound up in the interests of investors in the
units;
(c) if seventy-five per cent of the investors in the scheme pass a resolution at
a meeting of unit holders that the scheme be wound up; or
(d) if the Board so directs in the interests of investors.
(2) A venture capital fund set up as a company shall be wound up in accordance
with the provisions of the Companies Act, 1956 (1 of 1956).
2[(2A) A venture capital fund set up as a body corporate shall be wound up in
accordance with the provisions of the statute under which it is constituted.]
3[(3) The trustees or trustee company of the venture capital fund set up as a trust
or the Board of Directors in the case of the venture capital fund is set up as a
1 Substituted for “to the Board within fifteen days”, ibid.
2 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
3 Substituted, ibid. Prior to the substitution Sub-regulation (3) read as under:
Page 19 of 29
company (including body corporate) shall intimate the Board and investors of the
circumstances leading to the winding up of the Fund or Scheme under sub-
regulation (1).]
Effect of winding-up.
24. (1) On and from the date of intimation under sub-regulation (3) of regulation
23, no further investments shall be made on behalf of the scheme so wound up.
(2) Within three months from the date of intimation under sub-regulation (3) of
regulation 23, the assets of the scheme shall be liquidated, and the proceeds
accruing to investors in the scheme distributed to them after satisfying all
liabilities.
1[(3) Notwithstanding anything contained in sub-regulation (2) and subject to the
conditions, if any, contained in the placement memorandum or contribution
agreement or subscription agreement, as the case may be, in specie distribution
of assets of the scheme, shall be made by the venture capital fund at any time,
including on winding up of the scheme, as per the preference of investors, after
obtaining approval of at least 75% of the investors of the scheme.]
CHAPTER V
INSPECTION AND INVESTIGATION
Board’s right to inspect or investigate.
25. (1) The Board may 2[suo motu or upon receipt of information or complaint]
appoint one or more persons as inspecting or investigating officer to undertake
inspection or investigation of the books of account, records and documents
relating to a venture capital fund for any of the following reasons, namely:—
“The trustees or trustee company of the venture capital fund set up as a trust shall
intimate the Board and investors of the circumstances leading to the winding up of the scheme
under sub-regulation (1).”
1 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2004, w.e.f. 05-04-
2004.
2 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
Page 20 of 29
(a) to ensure that the books of account, records and documents are being
maintained by the venture capital fund in the manner specified in these
regulations;
(b) to inspect or investigate into complaints received from investors, clients or
any other person, on any matter having a bearing on the activities of the
venture capital fund;
(c) to ascertain whether the provisions of the Act and these regulations are
being complied with by the venture capital fund; and
(d) to inspect or investigate suo motu into the affairs of a venture capital fund,
in the interest of the securities market or in the interest of investors.
Notice before inspection or investigation.
26. (1) Before ordering an inspection or investigation under regulation 25, the
Board shall give not less than ten days notice to the venture capital fund.
(2) Notwithstanding anything contained in sub-regulation (1) where the Board is
satisfied that in the interest of the investors no such notice should be given, it
may by an order in writing direct that the inspection or investigation of the affairs
of the venture capital fund be taken up without such notice.
(3) During the course of an inspection or investigation, the venture capital fund
against whom the inspection or investigation is being carried out shall be bound
to discharge its obligations as provided in regulation 27.
1[Obligation of venture capital fund on inspection or investigation.
1 Substituted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000. Prior to the substitution Regulation 27 read as under:
“27. Obligations of venture capital fund on inspection or investigation by the Board.─(1) It
shall be the duty of the venture capital fund whose affairs are being inspected or investigated,
and of every director, officer and employee thereof, of its asset management company, if any,
and of its trustees or directors or the directors of the trustee company, if any, to produce before
the inspecting or investigating officer such books, securities, accounts, records and other
documents in its custody or control and furnish him with such statements and information
relating to the venture capital fund, as the inspecting or investigating officer may require, within
such reasonable period as the inspecting officer may specify.
(2) The venture capital fund shall allow the inspecting or investigating officer to have
reasonable access to the premises occupied by such venture capital fund or by any other
person on his behalf and also extend reasonable facility for examining any books, records,
Page 21 of 29
27. (1) It shall be the duty of every officer of the Venture Capital Fund in respect
of whom an inspection or investigation has been ordered under regulation 25 and
any other associate person who is in possession of relevant information
pertaining to conduct and affairs of such Venture Capital Fund including Fund
Manager or asset management company, if any, to produce to the Investigating
or Inspecting Officer such books, accounts and other documents in his custody
or control and furnish him with such statements and information as the said
Officer may require for the purposes of the investigation or inspection.
(2) It shall be the duty of every officer of the Venture Capital Fund and any other
associate person who is in possession of relevant information pertaining to
conduct and affairs of the Venture Capital Fund to give to the Inspecting or
Investigating Officer all such assistance and shall extend all such co-operation as
may be required in connection with the inspection or investigations and shall
furnish such information sought by the Inspecting or Investigating Officer in
connection with the inspection or investigation.
(3) The Investigating or Inspecting Officer shall, for the purposes of inspection or
investigation, have power to examine on oath and record the statement of any
employees, directors or person responsible for or connected with the activities of
venture capital fund or any other associate person having relevant information
pertaining to such Venture Capital Fund.
(4) The Inspecting or Investigating Officer shall, for the purposes of inspection or
investigation, have power to obtain authenticated copies of documents, books,
accounts of Venture Capital Fund, from any person having control or custody of
such documents, books or accounts.]
documents and computer data in the possession of the venture capital fund or such other
person and also provide copies of documents or other materials which, in the opinion of the
inspecting or investigating officer are relevant for the purposes of the inspection or
investigation, as the case may be.
(3) The inspecting or investigating officer, in the course of inspection or investigation shall be
entitled to examine or to record the statements of any director, officer or employee of the
venture capital fund.
(4) It shall be the duty of every director, officer or employee, trustee or director of the trustee
company of the venture capital fund to give to the inspecting or investigating officer all
assistance in connection with the inspection or investigation, which the inspecting or
investigating officer may reasonably require.”
Page 22 of 29
Submission of report to the Board.
28. The inspecting or investigating officer shall, as soon as possible, on
completion of the inspection or investigation submit an inspection or investigation
report to the Board:
Provided that if directed to do so by the Board, he may submit an interim
report.
Communication of findings etc., to the venture capital fund.
1[29.] The Board may after consideration of the investigation or inspection report
and after giving reasonable opportunity of hearing to the venture capital fund or
its trustees, directors issue such direction as it deems fit in the interest of
securities market or the investors including directions in the nature of:—
(a) requiring a venture capital fund not to launch new schemes or raise
money from investors for a particular period;
(b) prohibiting the person concerned from disposing of any of the properties of
the fund or scheme acquired in violation of these regulations;
(c) requiring the person connected to dispose of the assets of the fund or
scheme in a manner as may be specified in the directions;
(d) requiring the person concerned to refund any money or the assets to the
concerned investors along with the requisite interest or otherwise,
collected under the scheme;
(e) prohibiting the person concerned from operating in the capital market or
from accessing the capital market for a specified period.
1 Sub-regulations (1) and (2) omitted and sub-regulation (3) as inserted by SEBI (Venture Capital
Funds) (Amendment) Regulations, 2000 w.e.f 15-09-2000, renumbered as regulation 29 by the
SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations,
2002, w.e.f. 27-09-2002. Prior to its omission, Regulation 29 read as under:
“29. Communication of findings etc., to the venture capital fund.─(1) The Board shall,
after consideration of the inspection or investigation report or the interim report referred to in
regulation 28, communicate the findings of the inspection officer to the venture capital fund and
give him an opportunity of being heard.
(2) On receipt of the reply if any, from the venture capital fund, the Board may call upon the
venture capital fund to take such measures as the Board may deem fit in the interest of the
securities market and for due compliance with the provisions of the Act and these regulations.”
Page 23 of 29
CHAPTER VI
PROCEDURE FOR ACTION IN CASE OF DEFAULT
30. 1[Liability for action in case of default.
Without prejudice to the issue of directions or measure under regulation 29, a
venture capital fund which—
(a) contravenes any of the provisions of the Act or these regulations;
(b) fails to furnish any information relating to its activity as a venture capital
fund as required by the Board;
(c) furnishes to the Board information which is false or misleading in any
material particular;
(d) does not submit periodic returns or reports as required by the Board;
(e) does not co-operate in any enquiry, inspection or investigation conducted
by the Board;
(f) fails to resolve the complaints of investors or fails to give a satisfactory
reply to the Board in this behalf,
shall be dealt with in the manner provided in 2[Chapter V of the Securities and
Exchange Board of India (Intermediaries) Regulations, 2008.]
31 to 38. 1[* * *]
1 Substituted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing
Penalty) Regulations, 2002, w.e.f. 27-09-2002. Prior to its substitution, regulation 30 read as
under:
“30. Suspension of Certificate.─The Board may suspend the certificate granted to a
venture capital fund where the venture capital fund;
(a) contravenes any of the provisions of the Act or these regulations;
(b) fails to furnish any information relating to its activity as a venture capital fund as
required by the Board;
(c) furnishes to the Board information which is false or misleading in any material
particular;
(d) does not submit periodic returns or reports as required by the Board;
(e) does not co-operate in any enquiry, inspection or investigation conducted by the Board;
(f) fails to resolve the complaints of investors or fails to give a satisfactory reply to the
Board in this behalf.
Prior to its substitution, it was amended by the SEBI (Venture Capital Funds) (Amendment)
Regulations, 2000, w.e.f. 15-09-2000 and the words “Without prejudice to issue of directions or
measure under regulation 29,” were inserted.
2 Substituted for “the Securities and Exchange Board of India (Procedure for Holding Enquiry by
Enquiry Officer and Imposing Penalty) Regulations, 2002 by the SEBI (Intermediaries)
Regulations, 2008, w.e.f. 26-5-2008.”
Page 24 of 29
1 Regulations 31 to 38 omitted by the SEBI (Procedure for Holding Enquiry by Enquiry Officer
and Imposing Penalty) Regulations, 2002, w.e.f. 27-09-2002. Prior to its omission, Regulations
31 to 38 read as under:
31. Cancellation of certificate.─The Board may cancel the certificate granted to a venture
capital fund:-
(a) when the venture capital fund is guilty of fraud or has been convicted of an offence
involving moral turpitude;
(b) the venture capital fund has been guilty of repeated defaults of the nature specified
in regulation 30; or
Explanation: In this regulation, "fraud" has the same meaning as is assigned to it
in section 17 of the Indian Contract Act, 1872. (9 of 1872)
(c) contravenes any of the provisions of the Act or these regulations.
32. Manner of making order of cancellation or suspension.─No order of suspension or
cancellation of certificate shall be made by the Board, except after holding an enquiry in
accordance with the procedure specified in regulation 33.
33. Manner of holding enquiry before suspension or cancellation.─(1) For the purpose of
holding an enquiry under regulation 32, the Board may appoint one or more enquiry officers.
(2) The enquiry officer shall issue to the venture capital fund, at its registered office or its
principal place of business, a notice setting out the grounds on which action is proposed to be
taken against it and calling upon it to show cause against such action within a period of
fourteen days from the date of receipt of the notice.
(3) The venture capital fund may, within fourteen days from the date of receipt of such notice,
furnish to the enquiry officer a written reply, together with copies of documentary or other
evidence relied on by it or sought by the Board from the venture capital fund.
(4) The enquiry officer shall give a reasonable opportunity of hearing to the venture capital fund
to enable him to make submissions in support of its reply made under sub-regulation (3).
(5) Before the enquiry officer, the venture capital fund may appear through any person duly
authorised by the venture capital fund:
Provided that no lawyer or advocate shall be permitted to represent the venture capital fund
at the enquiry:
Provided further that where a lawyer or an advocate has been appointed by the Board as a
presenting officer under sub-regulation (6), it shall be lawful for the venture capital fund to
present its case through a lawyer or advocate.
(6) The enquiry officer may, if he considers it necessary, ask the Board to appoint a presenting
officer to present its case.
(7) The enquiry officer shall, after taking into account all relevant facts and submissions made
by the venture capital fund, submit a report to the Board and recommend the penal action, if
any, to be taken against the venture capital fund as also the grounds on which the proposed
action is justified.
34. Show-cause notice and order.─(1) On receipt of the report from the enquiry officer,
the Board shall consider the same and may issue to the venture capital fund a show-cause
notice as to why the penal action as proposed by the enquiry officer a[or such appropriate
action] should not be taken against it.
(2) The venture capital fund shall, within fourteen days of the date of the receipt of the show-
cause notice, send a reply to the Board.
(3) The Board, after considering the reply, if any, of the venture capital fund, shall, as soon as
possible pass such order as it deems fit.
a. The words "or such appropriate action" in sub-regulation (1) of regulation 34 were inserted by
SEBI (Venture Capital Funds) (Amendment) Regulations, 2000 published in the Official Gazette
of India dated 15-09-2000.
35. Effect of suspension and cancellation of certificate.─(1) On and from the date of the
suspension of the certificate, the venture capital fund shall cease to carry on any activity as a
venture capital fund during the period of suspension, and shall be subject to such directions of
the Board with regard to any records, documents or securities that may be in its custody or
control, relating to its activities as venture capital fund, as the Board may specify. (2) On and
Page 25 of 29
FIRST SCHEDULE-FORM
FORM A
Securities and Exchange Board of India
(Venture Capital Funds) Regulations, 1996
[See regulation 3]
APPLICATION FOR GRANT OF CERTIFICATE OF REGISTRATION AS
VENTURE CAPITAL FUND
SECURITIES AND EXCHANGE BOARD OF INDIA
MITTAL COURT, ‘B’ WING, 1ST FLOOR NARIMAN POINT,
MUMBAI 400 021 – INDIA
INSTRUCTIONS
(i) This form is meant for use by the company or trust (hereinafter referred to as
the applicant) for application for grant of certificate of registration as venture
capital fund.
(ii) The applicant should complete this form, and submit it, along with all
supporting documents to the Board at its head office at Mumbai.
(iii) This application form should be filled in accordance with these regulations.
(iv) The application shall be considered by the Board provided it is complete in all
respects.
from the date of cancellation of the certificate, the venture capital fund shall, with immediate
effect, cease to carry on any activity as a venture capital fund, and shall be subject to such
directions of the Board with regard to the transfer of records, documents or securities that may
be in its custody or control, relating to its activities as venture capital fund, as the Board may
specify.
36. Publication of order of suspension or cancellation.─The order of suspension or
cancellation of certificate passed under regulation 35 may be published by the Board in two
newspapers.
37. a[Action against intermediaries.─The Board may initiate action for suspension or
cancellation of registration of an intermediary holding a certificate of registration under section
12 of the Act who fails to exercise due diligence in the performance of its functions or fails to
comply with its obligations under these regulations.
Provided that no such certificate of registration shall be suspended or cancelled unless the
procedure specified in the regulations applicable to such intermediary is complied with.
38. Appeal to the Central Government.─Any person aggrieved by an order of the Board
under these regulations may prefer an appeal to the Securities Appellate Tribunal in
accordance with section 15T of the Act.]
a. Regulations 37 & 38 were inserted by SEBI (Venture Capital Funds) (Amendment)
Regulations, 2000 w.e.f 15-09-2000.”
Page 26 of 29
(v) All answers must be legible.
(vi) Information which needs to be supplied in more detail may be given on
separate sheets which should be attached to the application form.
(vii)The application must be signed and all signatures must be original.
(viii)The application must be accompanied by an application fee as specified in
the Second Schedule to these regulations.
1. Name, address of the registered office, address for correspondence,
telephone number(s), fax number(s), telex number(s) of the applicant and
the name of the contact person.
2. Please indicate to which of the following categories the applicant belongs.
(i) a company established under the Companies Act, 1956 (1 of 1956)
(ii) a trust set up under the Indian Trusts Act, 1882 (2 of 1882).
3. Date and place of incorporation or establishment and date of
commencement
of
business
(enclose
certificate
of
incorporation,
memorandum and articles of association or trust deed in terms of which
incorporated or established).
4. (a) Details of members of the Board of Trustees or directors of the trustee
company, as the case may be, in case the applicant has been set up as a
trust.
(b) Details of members of the Board of Directors of the venture capital fund
in case the applicant has been set up as a company.
5. Please state whether the applicant, his partner, director or principal officer is
involved in any litigation connected with the securities market which has an
adverse bearing on the business of the applicant; or has at any time been
convicted for any moral turpitude or at any time has been found guilty of any
economic offence. In case the applicant is a trust, the above information
should be provided for the members of the Board of Trustees or of the
abovementioned persons connected with the trustee company.
If yes, the details thereof.
6. 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
Page 27 of 29
rules, for which the applicant, or its parent or holding company or affiliate
may have been subject to economic, or criminal, liability, or suspended from
carrying out its operations, or the registration revoked temporarily.
7. Details of asset management company, if any (enclose copy of agreement
with the asset management company).
8. Declaration statement (to be given as below).
We hereby agree and declare that the information supplied in the
application, including the attachment sheets, is complete and true.
AND we further agree that, we shall notify the Securities and Exchange
Board of India immediately any change in the information provided in the
application.
We further agree that we shall comply with, and be bound by the Securities
and Exchange Board of India Act, 1992, and the Securities and Exchange
Board of India (Venture Capital Funds) Regulations, 1996, and Government
of India guidelines/instructions as may be announced by the Securities and
Exchange Board of India from time to time.
We further agree that as a condition of registration, we shall abide by such
operational instructions/directives as may be issued by the Securities and
Exchange Board of India from time to time.
For and on behalf of________________________________________
(Name of the applicant)
Authorized signatory___________________ ______________________
(Name) (Signature)
Date:
Place:
FORM B
[See regulation 7(3)]
SECURITIES AND EXCHANGE BOARD OF INDIA (VENTURE CAPITAL
FUNDS) REGULATIONS, 1996
CERTIFICATE OF REGISTRATION AS VENTURE CAPITAL FUND
Page 28 of 29
I. In exercise of the powers conferred by sub-section (1) of section 12 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992), read with
the regulations made thereunder, the Board hereby grants a certificate of
registration to
__________________________________________________
as a venture capital fund subject to the conditions specified in the Act and in
the regulations made thereunder.
II. The Registration Number of the venture capital fund is IN/VC
Date :
Place : MUMBAI
By Order
Sd/-
For and on behalf of
Securities and Exchange Board of India
SECOND SCHEDULE
Securities and Exchange Board of India
(Venture Capital Funds) Regulations, 1996
[See regulations 3(3) and 7]
FEES
1[PART A
AMOUNT TO BE PAID AS FEES
________________________________________________________________
Application fee
Rs. 1,00,000
Registration fee
Rs. 2[10,00,000]
________________________________________________________________
PART B
1 Substituted by the SEBI (Venture Capital Funds (Second Amendment) Regulations, 2006,
w.e.f. 04-09-2006. Prior to its substitution, Application fee was Rs. 25,000 and Registration fee
for grant of certificate was Rs. 5,00,000.
2 Substituted for “10,00,000” by the SEBI (Payment of Fees) (Amdt.) Regulations, 2008, 01-04-
2008.
Page 29 of 29
I. The fees specified above shall be payable by bank draft in favour of “The
Securities and Exchange Board of India” at Mumbai.
1[THIRD SCHEDULE
Securities and Exchange Board of India
(Venture Capital Funds) Regulations, 1996
[See Regulation 2(3)]
NEGATIVE LIST
(1) 2[***]
(2) Non-banking financial services 3[excluding those Non-Banking Financial
Companies which are registered with Reserve Bank of India and have been
categorized as Equipment Leasing or Hire Purchase Companies.].
(3) Gold financing 4[excluding those Companies which are engaged in gold
financing for jewellery.].
(4) Activities not permitted under industrial policy of Government of India.
(5) Any other activity which may be specified by the Board in consultation with
Government of India from time to time.]
1 Inserted by the SEBI (Venture Capital Funds) (Amendment) Regulations, 2000, w.e.f. 15-09-
2000.
2 Words “Real Estate” omitted by the SEBI (Venture Capital Funds) (Amendment) Regulations,
2004, w.e.f. 05-04-2004.
3 Inserted, ibid.
4 Inserted, ibid.