Firm commitment requirement for registration as Foreign Venture Capital Investors
Summary
SEBI mandates that applicants for registration as Foreign Venture Capital Investors must obtain firm commitments from investors. This requirement aligns FVCIs with domestic Venture Capital Funds by imposing a minimum contribution threshold before operations begin. The specified minimum commitment amount is set at USD 1 million at the time of application submission.
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applicants desirous of registering with SEBI as the Foreign Venture Capital Investors, henceforth, shall obtain firm commitment from their investors for contribution of an amount of at least USD 1 million at the time of submission of applications seeking registration as FVCIs.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Firm commitment requirement for registration as Foreign Venture Capital Investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.