Sebi Guidelines For Enterprise Majuscule Funds

Friends, inwards our final postal service nosotros accept discussed near the introduction together with features of Venture Capital Companies. In this postal service nosotros shall verbalise over near the guidelines issued yesteryear SEBI for Venture Capital Companies.The guidelines / regulations contained inwards a consultative newspaper (xi) dated 13th Feb 1996 are approved yesteryear SEBI inwards principle. The regulations are,

  1. Investments : Venture upper-case missive of the alphabet funds are permitted to invest upto lxxx per cent of their resources inwards assisted companies. They tin laissez passer on the axe invest upto xx per cent of their corpus inwards equity of a unmarried company. They tin laissez passer on the axe invest inwards sick units, plough only about companies together with furnish loans except to non-banking, non finance companies.
  2. Registartion : A unit of measurement sponsoring a venture upper-case missive of the alphabet fund has to utilize to SEBI for registration. Registration is granted dependent champaign to either a trust beingness formed together with a trust society incorporated or a venture upper-case missive of the alphabet society is incorporated. Existing VCF’s should register amongst SEBI inside three months of notification.
  3. Tax Aspect : It is provided consummate income-tax relaxation, exemption from upper-case missive of the alphabet gains taxation afterwards it is listed inwards the stock exchange. Shares volition accept to survive held at to the lowest degree for 72 monthly to taste taxation exemption. Lock inwards menses of three years is applicable to unlisted shares. 
  • The atmospheric condition for the approving are,
    1. It is registered amongst SEBI
    2. It invests lxxx per cent of full coin yesteryear acquiring equity shares of venture upper-case missive of the alphabet undertakings. 
    3. It invests lxxx per cent of its paid upwards upper-case missive of the alphabet inwards acquiring equity shares of venture upper-case missive of the alphabet undertakings.
    4. It shall non invest to a greater extent than than forty per cent inwards equity upper-case missive of the alphabet of i venture.
    5. It shall submit audited accounts to the Director of Income Tax
That’s all for straightaway Friends. In our adjacent postal service nosotros shall verbalise over near the Modes of Financing of Venture Capital Companies. Happy Reading 🙂
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