RBI/2006-2007/375
A. P. (DIR Series) Circular No.50
May 04, 2007
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Overseas Investment by Venture Capital Funds (VCFs)
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Attention of Authorised Dealer Category - I (AD Category - I) banks is invited
to para 2 of A. P. (DIR Series) Circular No. 49 dated April 30, 2007 on Overseas
Investment by Indian Venture Capital Funds (VCFs).
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It is clarified that Domestic Venture Capital Funds registered with SEBI,
have been permitted to invest in equity and equity-linked instruments only of
off-shore Venture Capital Undertakings. Accordingly, Domestic Venture Capital
Funds registered with SEBI, desirous of making investments in off-shore Venture
Capital Undertakings may approach SEBI for prior approval. No separate
permission from Reserve Bank is necessary for such VCFs.
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AD Category – I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
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The directions contained in this Circular have been issued under Section 10
(4) and 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and is without prejudice to permissions / approval, if any, required under any
other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager