ELIGIBILITY CRITERIA :

SEBI assesses the application of VCF on the following criteria:

(i) the applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity;

(ii) whether the applicant has been granted necessary approval by the Reserve Bank of India for making investments in India;

(iii) whether the applicant is an investment company, investment trust, investment partnership, pension fund, mutual fund, endowment fund, university fund, charitable institution or any other entity incorporated outside India; or

(iv) whether the applicant is an asset management company, investment manager or investment management company or any other investment vehicle incorporated outside India;

(v) whether the applicant is authorised to invest in venture capital fund or carry on activity as a foreign venture capital investors or alternative investment fund;

(vi) whether the applicant is regulated by an appropriate foreign regulatory authority or is an income tax payer; or submits a certificate from its banker of its or its promoter’s track record where the applicant is neither a regulated entity nor an income tax payer;

(vii) the applicant has not been refused a certificate by SEBI;

(viii) whether the applicant is a fit and proper person.

SEBI may require the applicant to furnish further information, if it considers necessary. An application which is not complete in all respects is rejected by SEBI. However before rejecting any such application, it has been provided in the Regulations that the applicant should be given an opportunity to remove, within thirty days of the date of receipt of communication, the objections indicated by SEBI. SEBI may, on being satisfied that it is necessary to extend the period specified above may extend such period but not beyond ninety days.