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NGO Registration of Venture Capital is regulated by SEBI (Venture Capital Funds) Regulations, 1996. Any Company or trust proposing to carry on an activity as a Venture Capitalist shall make an application to SEBI for grant of Certificate.
Venture capital funds are investment funds that manage the money of investors who seek private equity stakes in startup and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as high-risk/high-return opportunities. Venture capital funds are private equity investment vehicles that seek to invest in firms that have high-risk/high-return profiles, based on a company’s size, assets and various stages of economic development.
They are an early age investment with a long-term horizon. Many of these funds make small bets on a wide variety of young startups, believing that at least one will achieve high growth and reward the fund with a comparatively large payout at the end.
Examples: Nexus Venture Partners, Fidelity Growth Partners, Hellion Venture Partners etc
An Application for grant of Certificate of Registration shall be made to Board in Form A which shall be accompanied by NON-REFUNDABLE FEE.
Board may in the interest of investors issue directions for transfer of records, documents or securities of disposal of investments relating to VC’s activities.
On receipt of the intimation, the applicant shall pay to the Board, Registration Fees as specified & thereafter the Board on receipt of Fees shall grant a Certificate of Registration in Form B.
MOA should reflect the activity of Venture Capital Fund.
Prohibited by its MOA & AOA from making an invitation to the public to subscribe to its securities.
Directors & Officers are not involved in any litigation connected with Securities Market.
Should be a Fit & Proper person.
The main object of the Trust is to carry on the activity as VC Fund.
The instrument of the NGO registration is in the form of Deed & has been duly registered under Indian Registration Act, 1908.
Directors are not involved in any litigation connected with Securities Market or been convicted of any offense involving moral turpitude.
Should be a fit & proper person.
Set up under the laws of Central or State Legislature.
The applicant is permitted to carry on such activities.
The applicant is a fit & proper person.
Directors of the Trust are not involved in any litigation connected with Securities Market or been convicted of any offense involving moral turpitude.
Applicant has not been refused a Certificate by Board earlier.
*No VCF shall issue any documents inviting the public for subscription of its units. It may, however, receive monies through Private Placement of its units.
Documents to be filed with SEBI:
Board before ordering an inspection, shall not give less than 10 days’ notice to VCF. During the course of the inspection, the VC shall be bound to discharge its obligations.
The inspecting officer shall soon upon completing inspection submit an investigation or inspection report to the Board.