Meaning of Venture Capitalist
Venture Capitalists are companies or individuals who provide investment capital, management expertise and / or experience.
In return for their investment, Venture Capitalists will take an equity position in the company, usually in proportion to the amount of their investment and the level of risk involved.
The future return on their investment is tied to the performance of the company
Regulations Pertaining to Venture Capital Investment
Regulation by:
a. SEBI
- (Venture Capital Funds) Regulations, 1996
- (Foreign Venture Capital Investor) Regulations, 2000
b. Income Tax Act, 1961
c. Foreign Exchange Management Act
- Foreign Investment Promotion Board
- Reserve Bank of India
d. Indian Trust Act, 1882
e. Companies Act, 1956, as amended
Venture Capital Fund (VCF)
The Venture Capital Fund is defined as a fund established in the form of a Trust, or a company or a body corporate and registered with SEBI which:*has a dedicated pool of capital;*raised in the manner specified under the Regulations and
to invest in Venture Capital Undertakings in accordance with the Regulations."
Sources of Venture Capital Fund
Corporations
Individuals
Government Agencies
Financial Institutions
Pension Funds
Insurance Companies
Mutual Funds
INVESTMENT CONDITIONS
A venture capital fund may raise money from any investor i.e. Indian, foreign or non-resident Indians
No venture capital fund set up as a company or a trust shall accept any investment from any investor which is less than 5 lakh rupees
The minimum corpus of the fund before the fund can start activities shall be atleast Rs. 5 crores.
Venture Capitalists are companies or individuals who provide investment capital, management expertise and / or experience.
In return for their investment, Venture Capitalists will take an equity position in the company, usually in proportion to the amount of their investment and the level of risk involved.
The future return on their investment is tied to the performance of the company
Regulations Pertaining to Venture Capital Investment
Regulation by:
a. SEBI
- (Venture Capital Funds) Regulations, 1996
- (Foreign Venture Capital Investor) Regulations, 2000
b. Income Tax Act, 1961
c. Foreign Exchange Management Act
- Foreign Investment Promotion Board
- Reserve Bank of India
d. Indian Trust Act, 1882
e. Companies Act, 1956, as amended
Venture Capital Fund (VCF)
The Venture Capital Fund is defined as a fund established in the form of a Trust, or a company or a body corporate and registered with SEBI which:*has a dedicated pool of capital;*raised in the manner specified under the Regulations and
to invest in Venture Capital Undertakings in accordance with the Regulations."
Sources of Venture Capital Fund
Corporations
Individuals
Government Agencies
Financial Institutions
Pension Funds
Insurance Companies
Mutual Funds
INVESTMENT CONDITIONS
A venture capital fund may raise money from any investor i.e. Indian, foreign or non-resident Indians
No venture capital fund set up as a company or a trust shall accept any investment from any investor which is less than 5 lakh rupees
The minimum corpus of the fund before the fund can start activities shall be atleast Rs. 5 crores.