Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) Foreign Venture Capital Investors Amendment Regulations, 2014. These regulations, which amend the 2000 regulations, were published by authority on December 30, 2014, and came into force on the same date. The key change involves revisions to the definition of "venture capital undertaking."
Key Points / Main Content:
* **General Information**
* These regulations are called the Securities and Exchange Board of India Foreign Venture Capital Investors Amendment Regulations, 2014.
* They came into force on December 30, 2014, the date of their publication in the Official Gazette.
* **Amendments to the 2000 Regulations**
* In the Securities and Exchange Board of India Foreign Venture Capital Investors Regulations, 2000:
* Clause j in subregulation 1 of regulation 2 and the corresponding Third Schedule are omitted.
* Clause m in subregulation 1 of regulation 2 is substituted with a new definition of "venture capital undertaking".
* **Definition of Venture Capital Undertaking**
* "Venture capital undertaking" means a domestic company:
* Which is not listed on a recognised stock exchange in India at the time of making investment; and
* Which is engaged in the business for providing services, production, or manufacture of article or things and does not include the following activities or sectors:
* Non-banking financial companies, other than Core Investment Companies (CICs) in the infrastructure sector, Asset Finance Companies (AFCs), and Infrastructure Finance Companies (IFCs) registered with the Reserve Bank of India.
* Gold financing.
* Activities not permitted under the industrial policy of the Government of India.
* Any other activity which may be specified by the Board in consultation with the Government of India from time to time.
Impact Analysis:
* **Foreign Venture Capital Investors (FVCIs):**
* Impact: FVCIs are affected by the revised definition of "venture capital undertaking," which impacts their investment options and eligibility criteria.
* Action Required: FVCIs need to review their investment strategies and ensure compliance with the new definition of "venture capital undertaking" to align with the amended regulations.
* **Securities and Exchange Board of India (SEBI):**
* Impact: SEBI is responsible for enforcing the amended regulations and may need to specify further activities not included in the definition of "venture capital undertaking" in consultation with the Government of India.
* Action Required: SEBI needs to communicate and implement the amended regulations, providing guidance and clarification as needed.
* **Domestic Companies:**
* Impact: Domestic companies seeking venture capital investments are affected by the new definition, particularly those in sectors now excluded from being classified as venture capital undertakings.
* Action Required: Domestic companies need to assess their eligibility as "venture capital undertakings" under the new definition and adjust their business plans or funding strategies accordingly.
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 Foreign Venture Capital Investors Regulations, 2000: Regulations pertaining to foreign venture capital investments as governed by SEBI.
Securities and Exchange Board of India Foreign Venture Capital Investors Amendment Regulations, 2014: Amendment regulations to the SEBI's regulations concerning foreign venture capital investors.
Mumbai, Maharashtra: The city in India where the notification was issued by SEBI.
Official Gazette: The official government publication where the regulations are published.
Reserve Bank of India: The central bank of India.
U. K. Sinha: The Chairman of SEBI at the time of notification.
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 378] ubZ fnYyh] eaxyokj] fnlEcj 30] 2014@ikS""""kkkk 9] 1936
No. 378] NEW DELHI, TUESDAY, DECEMBER 30, 2014/PAUSHA 9, 1936
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मममम(cid:12)(cid:12)ुु(cid:12)(cid:12)ुु बबबबईईईई, 30 (cid:14)(cid:14)(cid:14)(cid:14)ददददसससस(cid:12)(cid:12)(cid:12)(cid:12)बबबबरररर, 2014
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
((((ििििववववददददेशेशेशेशीीीी जजजजोोोोििििखखखखमममम पपपपजजूँूँजजूँूँ ीीीी ििििववववििििननननधधधधााााननननककककतततताााा))(cid:9)(cid:9)))(cid:9)(cid:9) ((((ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011114444
सससस..ंं..ंं एएएएलललल....एएएए....डडडडीीीी....एएएएनननन....आआआआरररर....ओओओओ....////जजजजीीीी....एएएएनननन....////2222000011114444----11115555////22220000////1111999977772222.—बोड,(cid:4) भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) अिधिनयम,
1992 (1992 का 15) क(cid:11) धारा 30 (cid:12)ारा (cid:5)द(cid:16) शि(cid:18)य(cid:20) का (cid:5)योग करत े (cid:22)ए, एत(cid:24)ारा भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4)
(िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) िविनयम, 2000 का और संशोधन करन े के िलए िन$िलिखत िविनयम बनाता ह,ै
अथा(cid:4)त ्:-
1. इन िविनयम(cid:20) को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) (संशोधन) िविनयम,
2014 कहा जा सकेगा ।
2. वे राजप) म * उनके (cid:5)काशन क(cid:11) तारीख को (cid:5)वृ(cid:16) ह(cid:20)ग े ।
3. भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) िविनयम, 2000 म,* िविनयम 2 म,* उप-
िविनयम (1) म,* -
(i). खंड (ञ) तथा त-संबंधी तीसरी अनुसूची का लोप हो जायेगा;
(ii). खंड (ड) िन$िलिखत से (cid:5)ित0थािपत हो जायेगा :-
"(ड) "जोिखम पूँजी उप2म" से देशी कंपनी अिभ(cid:5)ेत ह:ै
5187 GI/2014 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4)]
(i) जो िनवेश (िविनधान) 3कय े जाने के समय भारत म * मा4यता(cid:5)ा5 0टॉक ए8सच*ज म * सूचीब: नह;
ह;ै और
(ii) जो सेवाएँ उपल<ध करान,े व0त ु या चीज(cid:20) के उ-पादन या िविनमा(cid:4)ण के कारबार म * लगी ह ै और
िजसम* िन$िलिखत 32याकलाप या ?े) (से8टर) सि@मिलत नह; ह A:
(1) भारतीय Bरज़व (cid:4) बAक से रिज0Dीकृत मूल िनवेश (कोर इ4वे0टम*ट) कंपिनय(cid:20) [अवसंरचना ?े)
(इ4Fा0D8चर से8टर) क(cid:11)], आि0त िव(cid:16) (असेट फाइन*स) कंपिनय(cid:20) और अवसंरचना िव(cid:16) (इ4Fा0D8चर
फाइन*स) कंपिनय(cid:20) स े िभI गैर-बAककारी (गैर-बAJकग) िव(cid:16)ीय कंपिनयाँ;
(2) 0वण (cid:4)िव(cid:16)पोषण (गोLड फाइनAMसग);
(3) वे 32याकलाप जो भारत सरकार क(cid:11) औOोिगक नीित के अधीन अनुPात न ह(cid:20);
(4) ऐसा कोई अ4य 32याकलाप जो बोड (cid:4) (cid:12)ारा समय-समय पर भारत सरकार के परामश (cid:4) से िविनQदR
3कया जाये ।"
यू. के. िस4हा, अSय?
िवPापन---- /4/असा./69 जडे बी/14/(240)
[ III ]
पपपपाााादददद (cid:31)(cid:31)(cid:31)(cid:31)टटटट!!!!पपपपणणणण ::::
(1) भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) िविनयम, 2000, मूल िविनयम, का.आ.
सं.832 (अ), 15 िसत@बर, 2000 को भारत के राजप) म * (cid:5)कािशत (cid:22)ए थ े ।
(2) भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) िविनयम, 2000 त-पTात ् :-
(क) 7 जून 2001 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) (संशोधन)
िविनयम, 2001, का.आ. सं. 501(अ), (cid:12)ारा;
(ख) 27 िसत@बर 2002 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (जाँच अिधकारी (cid:12)ारा जाचँ करन ेऔर शाि0त
अिधरोिपत करने के िलए (cid:5)32या) िविनयम, 2002, का.आ. सं. 1045(अ), (cid:12)ारा;
(ग) 10 माच(cid:4) 2004 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (उपयु(cid:18) तथा उिचत Uि(cid:18) के िलए मानदंड)
िविनयम, 2004, का.आ. सं. 398(अ), (cid:12)ारा;
(घ) 5 अ(cid:5)ैल 2004 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4) (संशोधन)
िविनयम, 2004, का.आ. सं. 469(अ), (cid:12)ारा;
(ङ) 4 िसत@बर 2006 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (िवदेशी जोिखम पूँजी िविनधानकता)(cid:4)
(संशोधन) िविनयम, 2006, का.आ. सं. 1443(अ), (cid:12)ारा;
(च) 26 मई 2008 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (मSयवतW) िविनयम, 2008, सं. एलएडी-
एनआरओ/जीएन/2008/11/126538, (cid:12)ारा;¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(छ) 29 जून 2009 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) (फ(cid:11)स का संदाय) (संशोधन) िविनयम, 2009, सं.
एल.ए.डी.-एन.आर.ओ./जी.एन./2009-10/11/ 167759, (cid:12)ारा;
(ज) 21 मई 2012 को भारतीय (cid:5)ितभूित और िविनमय बोड (cid:4) [आनुकिLपक िविनधान (िनवेश) िनिधयाँ]
िविनयम, 2012, सं. एल.ए.डी.-एन.आर.ओ./जी.एन./2012-13/ 04/11262, (cid:12)ारा
संशोिधत (cid:22)ए थ े ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 30th December, 2014
SECURITIES AND EXCHANGE BOARD OF INDIA
(FOREIGN VENTURE CAPITAL INVESTORS) (AMENDMENT) REGULATIONS, 2014
No. LAD/NRO/GN/2014/15/20/1972.—In exercise of the powers conferred by section 30 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 (Foreign Venture Capital Investors) Regulations, 2000, namely:─
1. These Regulations may be called the Securities and Exchange Board of India (Foreign Venture Capital
Investors) (Amendment) Regulations, 2014.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000, in
regulation 2, in sub-regulation (1), -
(i). clause (j) and the corresponding Third Schedule shall be omitted;
(ii). clause (m) shall be substituted with the following:-
"(m) "venture capital undertaking" means a domestic company:
(i) which is not listed on a recognised stock exchange in India at the time of making
investment; and
(ii) which is engaged in the business for providing services, production or manufacture of
article or things and does not include following activities or sectors:
(1) non-banking financial companies, other than Core Investment Companies (CICs) in
the infrastructure sector, Asset Finance Companies (AFCs), and Infrastructure Finance
Companies (IFCs) registered with Reserve Bank of India;
(2) gold financing;
(3) activities not permitted under industrial policy of Government of India;
(4) any other activity which may be specified by the Board in consultation with
Government of India from time to time."
U. K. SINHA, Chairman
[ADVT.III4/Exty./69 ZB/14(240)]
Footnote:
(1) Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000, the Principal
Regulations, were published in the Gazette of India on September 15, 2000 vide S.O. No.832 (E).4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4)]
(2) The Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000 were
subsequently amended:–
(a) on June 7, 2001 by the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2001 vide S.O. No.
501(E);
(b) on September 27, 2002 by the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty)
Regulations, 2002 vide S.O. No. 1045(E);
(c) on March 10, 2004 by the SEBI (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E);
(d) on April 5, 2004 by the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2004 vide
S.O. No. 469(E);
(e) on September 4, 2006 by the SEBI (Foreign Venture Capital Investors) (Amendment) Regulations, 2006 vide
S.O. 1443(E);
(f) on May 26, 2008 by the SEBI (Intermediaries) Regulations, 2008 vide No LAD-NRO/GN/2008/11/126538;
(g) on June 29, 2009 by the SEBI (Payment of Fees) (Amendment) Regulations, 2009, vide No. LAD-
NRO/GN/2009-10/11/167759;
(h) on May 21, 2012 by the SEBI (Alternative Investment Funds) Regulations, 2012, vide No. LAD-
NRO/GN/2012-13/04/11262.
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.