As per new Circular of Reserve Bank of India (RBI), the Foreign Exchange
Management (Transfer or Issue of Security by a Person Resident outside
India) Regulations, 2000 notified vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000
as amended from time to time, in terms of which, a SEBI registered
Foreign Venture Capital Investor (FVCI) may invest in equity, equity
linked instruments, debt, debt instruments, debentures of an Indian
Venture capital Undertaking (IVCU) or of a Venture Capital Funds (VCF)
through Initial Public Offer or Private Placement or in units of schemes
/ funds set up by a VCF, subject to such terms and conditions
mentioned therein.
RBI has now been decided, to allow FVCIs to
invest in the eligible securities (equity, equity linked instruments,
debt, debt instruments, debentures of an IVCU or VCF, units of schemes /
funds set up by a VCF) by way of private arrangement / purchase from a
third party also, subject to terms and conditions as stipulated in
Schedule 6 of Notification No. FEMA 20 / 2000 -RB dated May 3, 2000 as
amended from time to time. It is also being clarified that SEBI
registered FVCIs would also be allowed to invest in securities on a
recognized stock exchange subject to the provisions of the SEBI (FVCI)
Regulations, 2000, as amended from time to time, as well as the terms
and conditions stipulated therein.
No comments:
Post a Comment