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    Question

    Which of the following is true regarding requirements to be satisfied by a foreign investor before it can make investments in venture capital companies in India?

    i. It should have been incorporated and established in any country including India.

    ii. It should be willing to make investment in VCFs or VCUs in India in accordance with SEBI regulations.

    iii. It should have got itself registered with SEBI as a FVCI.

    A Only i Correct Answer Incorrect Answer
    B Only ii Correct Answer Incorrect Answer
    C Only i & ii Correct Answer Incorrect Answer
    D Only ii & iii Correct Answer Incorrect Answer
    E All of these Correct Answer Incorrect Answer

    Solution

    The term FVCI has been defined under the SEBI (Foreign Venture Capital Investor) Regulations 2000 to mean: “an investor incorporated or established outside India, which proposes to make investments in venture capital fund(s) or venture capital undertakings in India and is registered under the FVCI Regulations”. There are three requirements to be satisfied by a foreign investor before it can make investments in venture capital companies in India: 1. It should have been incorporated and established in any country outside India; 2. It should be willing to make investment in VCFs or VCUs in India in accordance with SEBI regulations; and 3. It should have got itself registered with SEBI as a FVCI.

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