Eligibility Criteria

19Y. For the purpose of the grant of certificate under this Chapter, the Board shall consider the following eligibility conditions, namely, —

(a) the applicant has a certificate of registration as a Venture Capital Fund under Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996;

(b) the applicant is a fit and proper person;

(c) the applicant has furnished the required information as specified by the Board from time to time;

(d) the applicant has no pending investor complaint with regard to non-receipt of funds or securities for any of its schemes whose assets are not liquidated in terms of subregulation (2) of regulation 24 of Securities and Exchange Board of India (Venture Capital Funds) Regulations 1996, on the date of application under this Chapter;

(e) no scheme launched by the applicant has investment from an investor which is less than five lakh rupees:

Provided that nothing contained in clause (e) shall apply to investors who are employees or the principal officer or directors of the venture capital fund or directors of the trustee company or trustees where the venture capital fund has been established as a trust or the employees of the manager or asset management company of the migrated venture capital fund;

(f) each scheme launched by the applicant has a firm commitment from the investors for contribution of an amount not below rupees five crores before the start of operations by the applicant.