Terms such as ‘Bilateral Memorandum of Understanding’, ‘Control’, ‘Designated depository participant’, and ‘International Financial Services Centre’ have been added to the 2000 Regulations.
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On 05-09-2024, the Securities and Exchange Board of India (‘SEBI’) notified the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. They shall come into force with effect from 01-01-2025.
Key Points:
The provision for application for grant of certificate as a foreign venture capital investor mentioned in Regulation 3 has been amended by way of the 2024 Amendment Regulations.
Regulation 4 provided the eligibility criteria for the grant of registration certificate as a foreign venture capital investor has been amended to include additional requirements for the grant of the certificate.
By way of amendment of Regulation 5, not only the Board but also the designated depository participant may require further information or clarification for the grant of registration certificate.
Regulation 6 has been amended to provide for application to conform to the requirements. Earlier, it provided for the consideration of the application.
Regulation 7 has been amended to provide for the certificate of registration. Earlier, it provided the procedure for grant of certificate.
The scope of conditions of the certificate provided in Regulation 8 has also been widened by way of the 2024 Amendment Regulations.
Regulation 9 has been amended to provide for the renewal of registration and surrender of certificate. Earlier, it provided for the procedure where the certificate was not granted.
Regulation 14 has been amended to provide for the appointment of custodian. Earlier, it contained the provision for general obligations and responsibilities.
Regulations 15A and 15B have been added by way of amendment. These Regulations provide for the ‘Obligations and responsibilities of foreign venture capital investor’ and the ‘Obligations and responsibilities of designated depository participants’ respectively.
The First and Second Schedule have also been amended by way of the 2024 Amendment Regulations.
