FVCI means a foreign investor who is registered under the SEBI (FVCI) Regulations, 2000 and proposes to make investments in Venture Capitals as per the regulations.
FVCIs can invest upto 66.67% of their funds in unlisted equity shares or equity-linked instruments of venture capital undertaking or Investee Company and up to 33.33% of its funds in securities specified in Regulation 11 of SEBI (FVCI) Regulations, 2000 as amended from time to time. FVCI can also invest its total funds in AIFs registered under the SEBI (AIFs) Regulations, 2012 or Venture Capital Fund (VCF) registered in the erstwhile SEBI (VCF) Regulations, 1996.
Under the Second Schedule of SEBI (FVCI) Regulation, 2000, the Registration fee payable for registration of an FVCI is USD 8500/- along with GST at the rate of 18%.
Yes. FVCIs are required to enter into an agreement with the domestic custodian who shall act as a custodian of securities for FVCI. The domestic custodian is required to monitor investments of FVCI in India, furnish periodic reports to SEBI and furnish such other information as may be called for by SEBI.
In accordance with Regulation 13(1) of SEBI (FVCI) Regulation, 2000, all FVCIs are required to submit a quarterly report on venture capital activity to SEBI. On behalf of the FVCI, it is the domestic custodian who is responsible to submit the report on time. The report has to be uploaded on the SEBI online portal within 7 (seven) days from the end of each quarter of the calendar year.
SEBI may suspend the certificate of registration granted to an FVCI, if the FVCI contravenes any of the provisions of the SEBI Act, 1992 or any regulations framed thereunder; or FVCI fails to furnish any information sought by the SEBI; or furnishes false or misleading information; or fails to submit the periodic returns and reports; or does not co-operate with SEBI in any inquiry or inspection.
SEBI may cancel the certificate of registration granted to an FVCI, if the FVCI is found guilty of fraud or has been convicted for an offence involving moral turpitude, or it is guilty of multiple defaults; or if FVCI ceases to meet the eligibility criteria specified in the SEBI (FVCI) Regulations, 2000; or if FVCI contravenes the provisions of SEBI Act or any Regulations framed under it.