The Securities and Exchange Board of India (SEBI) on September 05, 2024, issued the Securities and Exchange Board of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000.
The following amendments have been stated:
• Regulation 3 shall be substituted with the following, namely,-
“Application for grant of certificate as a foreign venture capital investor
3. (1) No person shall buy, sell or otherwise deal in securities as a foreign venture capital investor unless it has obtained a certificate granted by a designated depository participant on behalf of the Board.
(2) An application for the grant of certificate as a foreign venture capital investor shall be made to a designated depository participant in the Form and in the manner specified by the Government or the Board from time to time:
Provided that the foreign venture capital investors who have been granted a certificate of registration before the notification of the Securities and Exchange Board of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2024 shall engage a designated depository participant in the manner and subject to such conditions as may be specified by the Board.
(3) The application shall be supported by the fee specified in the Second Schedule and by any documents in the manner specified by the Board from time to time.”
• Regulation 5 shall be substituted with the following, namely,-
“Furnishing of information and personal representation.
5.(1) The Board or the designated depository participant may require the applicant to furnish such further information or clarification as may be considered necessary for the grant of the certificate of registration as a foreign venture capital investor.
(2) The applicant or its authorized representative shall, if so required by the Board or the designated depository participant, appear before them for personal representation in connection with the grant of a certificate.”
• Regulation 7 shall be substituted with the following, namely,-
“Certificate of registration.
7. (1) If the designated depository participant is satisfied that an applicant is eligible and fulfils the requirements as specified in these regulations, the designated depository participant shall, on behalf of the Board, grant the certificate of registration to an applicant, bearing registration number generated by the Board, specified in Part B of the First Schedule.
(2) The designated depository participant shall endeavour to dispose of the application for grant of certificate of registration as soon as possible but not later than thirty days after receipt of application by the designated depository participant, or after the information called for under regulation 5 has been furnished; whichever is later.
(3) Upon grant of certificate of registration to the applicant, the designated depository participant shall remit the fee, as specified in the Second Schedule, received from the applicant to the Board.
(4) If an applicant seeking registration as a foreign venture capital investor has any grievance with respect to its application or if the designated depository participant has any question in respect of interpretation of any provision of these regulations, it may approach the Board for appropriate instructions.”
They shall come into force with effect from January 1, 2025.
[Notification No. SEBI/LAD-NRO/GN/2024/203]
