Eligible Investors

20. (1) A Venture Capital scheme shall not have more than fifty (50) investors. (2) Investors investing at least USD 250,000 and Accredited Investors shall be permitted to invest in such schemes: Provided that where the investors are employees or directors or designated partners of the FME, the minimum value of investment shall be USD 60,000: 2 Substituted by the International Financial Services Centres Authority (Fund Management) (Amendment) Regulations, 2026 w.e.f. January 30, 2026. Before substitution, it stood as under: "Provided that if a FME fails to achieve the minimum size of corpus, as specified under sub-regulation (1) of regulation 23, within the specified time period, it shall have the one-time option to extend the validity of the placement memorandum for a further period of six (6) months by paying fifty per cent. (50%) of the fee as applicable for filing of a fresh scheme." Provided further that a FME may accept investments in a Venture Capital scheme from multiple investors acting together as joint investors, wherein each such investor shall invest at least the minimum applicable investment amount: Provided also that the total investments by the following individuals when acting as joint investors, shall be at least USD 250,000: (i) An investor and his/her spouse; (ii) An investor and his/her parent; (iii) An investor and his/her daughter/son. Provided also that the minimum investment threshold specified above shall not apply to an Accredited Investor. Explanation.- A Registered FME intending to launch Venture Capital Schemes to target more than fifty (50) investors or pool money from investors investing with lower application size of USD 150,000 shall be able to do so under restricted schemes as provided under Part B of this Chapter.