Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) Alternative Investment Funds Amendment Regulations, 2016. These regulations amend the 2012 regulations and came into force on the date of their publication in the Official Gazette, January 4, 2017. The amendments pertain to regulations 19E and 19F, addressing investment conditions and guidelines for alternative investment funds.
Key Points / Main Content:
Amendments to Regulation 19E:
* In subregulation 4 of regulation 19E, the words "forty nine" are replaced with "two hundred."
Amendments to Regulation 19F:
* In subregulation 1, the word "only" shall be deleted.
* In clause a of subregulation 1, criteria regarding the age of the venture capital undertaking/startup complies with the criteria issued by the Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry, Government of India vide notification No. G.S.R. 180E dated February 17, 2016, or such other policy made in this regard which may be in force.
* In subregulation 2, the words "fifty" are replaced with "twenty five."
* In subregulation 3, the words "three years" are replaced with "one year."
* After subregulation 5, subregulation 6 is inserted: An angel fund may also invest in the securities of companies incorporated outside India subject to conditions or guidelines stipulated or issued by the Reserve Bank of India and the Board from time to time.
Impact Analysis:
Securities and Exchange Board of India (SEBI):
* Impact: SEBI is responsible for enforcing and overseeing the amended regulations for Alternative Investment Funds.
* Action Required: SEBI needs to ensure compliance with the amended regulations.
Alternative Investment Funds (AIFs):
* Impact: AIFs, particularly angel funds and venture capital funds, are directly affected by the changes in investment criteria and conditions.
* Action Required: AIFs must adjust their investment strategies and practices to align with the new regulations, including revised investment limits, age criteria for venture capital undertakings/startups, and guidelines for overseas investments by angel funds.
Investors in AIFs:
* Impact: Investors are indirectly affected as the regulations impact the investment strategies and risk profiles of AIFs.
* Action Required: Investors should review the updated regulations and their potential impact on their investment portfolios.
Venture Capital Undertakings/Startups:
* Impact: Startups seeking investments from AIFs are impacted by the change in age criteria.
* Action Required: Startups need to ensure they meet the criteria regarding the age of the venture capital undertaking/startup issued by the Department of Industrial Policy and Promotion to be eligible for investments.
Reserve Bank of India (RBI):
* Impact: The RBI's role is now formally acknowledged regarding overseas investments by angel funds.
* Action Required: The RBI may need to stipulate or issue guidelines related to overseas investments by angel funds, as needed.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for securities and commodity market in India.
Securities and Exchange Board of India Act, 1992: The Act of the Parliament of India that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012: Regulations pertaining to Alternative Investment Funds as defined and governed by the Securities and Exchange Board of India.
Securities and Exchange Board of India Alternative Investment Funds Amendment Regulations, 2016: Amendment regulations to the Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012.
Department of Industrial Policy and Promotion: A department under the Ministry of Commerce and Industry, Government of India.
Ministry of Commerce and Industry: A ministry of the Government of India.
Reserve Bank of India: The central bank of India.
U. K. Sinha: Chairman of Securities and Exchange Board of India.
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 07] NEW DELHI, WEDNESDAY, JANUARY 4, 2017/PAUSA 14, 1938
भारतीय (cid:7079)ितभिू त और िविनमय बोड(cid:6981)
अिधसचू ना
मु(cid:7013)बई, 3 जनवरी, 2017
भारतीय (cid:7079)ितभिू त और िविनमय बोड(cid:6981)
[आनुकि(cid:7016)पक िविनधान (िनवशे ) िनिधया]ँ (सशं ोधन) िविनयम, 2016
स.ं सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/026.—बोड(cid:6981), भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) अिधिनयम, 1992
(1992 का 15) क(cid:7409) धारा 11 क(cid:7409) उप-धारा (1), धारा 11 क(cid:7409) उप-धारा (2) के खंड (खक) तथा खंड (ग) और धारा 12 क(cid:7409) उप-धारा (1)
तथा (1ख) के साथ प(cid:7407)ठत धारा 30 क(cid:7409) उप-धारा (1) (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करते (cid:7263)ए, एत(cid:7375)ारा भारतीय (cid:7079)ितभूित और िविनमय
बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ िविनयम, 2012 का और संशोधन करने के िलए िन(cid:7388)िलिखत िविनयम बनाता ह,ै अथा(cid:6981)त,्-
1.(cid:32) इन िविनयम(cid:7298) को भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ (संशोधन) िविनयम, 2016
कहा जा सकेगा ।
2.(cid:32) वे राजप(cid:7074) म(cid:7286) उनके (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)गे ।
3.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ िविनयम, 2012 म(cid:7286), -
(i)(cid:32) िविनयम 19ङ के उप-िविनयम (4) म(cid:7286), श(cid:7011)द "उनचास" के िलए, श(cid:7011)द "दो सौ" (cid:7079)ित(cid:7021)थािपत हो जाएँगे ।
(ii)(cid:32) िविनयम 19च म(cid:7286),-
(क)(cid:32) उप-िविनयम (1) म(cid:7286), श(cid:7011)द "केवल" का लोप हो जाएगा ।
(ख)(cid:32) उप-िविनयम (1) म(cid:7286), खंड (क) िन(cid:7388)िलिखत से (cid:7079)ित(cid:7021)थािपत हो जाएगा, अथा(cid:6981)त्:-
43 GI/2017 (1)(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
"(क) जो भारत सरकार के वािण(cid:6996)य और उ(cid:7378)ोग मं(cid:7074)ालय के औ(cid:7378)ोिगक नीित एवं संवध(cid:6981)न िवभाग (cid:7367)ारा
तारीख 17 फरवरी, 2016 क(cid:7409) अिधसूचना सं. सा.का.िन. 180(अ) के मा(cid:7007)यम से जोिखम पूँजी उप(cid:7059)म
(व(cid:7286)चर कैिपटल अंडरटे(cid:7412)कग) / (cid:7021)टाट(cid:6981)अप क(cid:7409) आयु के संबंध म(cid:7286) जारी (cid:7408)कए गए मानदडं (cid:7298) का या इस संबंध म(cid:7286)
बनाई गई ऐसी अ(cid:7008)य नीित (जो (cid:7079)वृ(cid:7275) हो) का पालन करते ह;(cid:7289)"।
(ग)(cid:32) उप-िविनयम (2) म(cid:7286), श(cid:7011)द "पचास" के िलए, श(cid:7011)द "प(cid:7340)ीस" (cid:7079)ित(cid:7021)थािपत हो जाएगा ।
(घ)(cid:32) उप-िविनयम (3) म(cid:7286), श(cid:7011)द(cid:7298) "तीन वष(cid:7300)" के िलए, श(cid:7011)द "एक वष(cid:6981)" (cid:7079)ित(cid:7021)थािपत हो जाएँगे ।
(ङ)(cid:32) उप-िविनयम (5) के प(cid:7391)ात्, िन(cid:7388)िलिखत उप-िविनयम (6) अंत:(cid:7021)थािपत (cid:7408)कया जाएगा, अथा(cid:6981)त:्-
"(6) एंजल िनिध (एंजल फंड) भारत के बाहर िनगिमत कंपिनय(cid:7298) क(cid:7409) (cid:7079)ितभूितय(cid:7298) (िस(cid:6989)यू(cid:7407)रटीज़) म(cid:7286) भी
िनवेश (िविनधान) ऐसी शत(cid:7300) या माग(cid:6981)दश(cid:6981)क िस(cid:7373)ाँत(cid:7298) (गाइडलाइ(cid:7008)स) के अ(cid:7007)यधीन कर सकेगी, जो भारतीय
(cid:7407)रज़व(cid:6981) ब(cid:7289)क और बोड(cid:6981) (cid:7367)ारा समय-समय पर िनधा(cid:6981)(cid:7407)रत या जारी (cid:7408)कए जाएँ ।"
यू.के. िस(cid:7008)हा, अ(cid:7007)य(cid:6979)
[िव(cid:6980)ापन-III/4/असा./366/16]
पाद (cid:7407)ट(cid:7009)पण :
1.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ िविनयम, 2012, सं. एल.ए.डी.-
एन.आर.ओ./जी.एन./2012-13/04/11262, 21 मई 2012 को भारत के राजप(cid:7074) म(cid:7286) (cid:7079)कािशत (cid:7263)ए थे ।
2.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ िविनयम, 2012 16 िसत(cid:7013)बर, 2013 को भारतीय
(cid:7079)ितभूित और िविनमय बोड(cid:6981) [आनुकि(cid:7016)पक िविनधान (िनवेश) िनिधया]ँ (संशोधन) िविनयम, 2013, सं. एलएडी-
एनआरओ/जीएन/2013-14/24/6573, (cid:7367)ारा संशोिधत (cid:7263)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 3rd January, 2017
SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS)
(AMENDMENT) REGULATIONS, 2016
No. SEBI/LAD-NRO/GN/2016-17/026.— In exercise of the powers conferred by sub-section (1) of
section 30 read with sub-section (1) of section 11, clause (ba) and clause (c) of sub-section (2) of section 11
and sub-sections (1) and (1B) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of
1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board
of India (Alternative Investment Funds) Regulations, 2012, namely,–
4.(cid:32) These regulations may be called the Securities and Exchange Board of India (Alternative Investment
Funds) (Amendment) Regulations, 2016.
5.(cid:32) They shall come into force on the date of their publication in the Official Gazette.
6.(cid:32) In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, -
I.(cid:32) In sub-regulation (4) of regulation 19E, for the words “forty nine”, the words “two hundred”
shall be substituted.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
II.(cid:32) In Regulation 19F,-
(i)(cid:32) In sub-regulation (1), the word “only” shall be deleted.
(ii)(cid:32) In clause (a) of sub-regulation (1), the words “have been incorporated during the
preceding three years from the date of such investment” shall be substituted by the
words “complies with the criteria regarding the age of the venture capital
undertaking/startup issued by the Department of Industrial Policy and Promotion under
the Ministry of Commerce and Industry, Government of India vide notification No.
G.S.R. 180(E) dated February 17, 2016 or such other policy made in this regard which
may be in force;”.
(iii)(cid:32)In sub-regulation (2), for the words “fifty”, the words “twenty five” shall be substituted.
(iv)(cid:32)In sub-regulation (3), for the words “three years”, the words “one year” shall be
substituted.
(v)(cid:32) After sub-regulation (5), the following sub-regulation (6) shall be inserted, namely:-
“(6) An angel fund may also invest in the securities of companies incorporated outside
India subject to such conditions or guidelines that may be stipulated or issued by the
Reserve Bank of India and the Board from time to time.”
U. K. SINHA , Chairman
[ADVT.-III/4/Exty./366/16]
Footnote:
1.(cid:32) The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 were
published in the Gazette of India on 21st May, 2012 vide No. LAD-NRO/GN/2012-13/04/11262.
2.(cid:32) The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 were
amended on 16th September, 2013 by the Securities and Exchange Board of India (Alternative
Investment Funds) (Amendment) Regulations, 2013 vide No. LAD-NRO/GN/2013-14/24/6573.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.