Investment Conditions restrict fund exposure and require majority allocation to unlisted equity instruments, and limit secondary investments to specified categories.

Regulation 12 requires disclosure of a venture capital fund's investment strategy and life-cycle, prohibits investments in associated companies, and limits exposure to any single investee. A majority of investible funds must be placed in unlisted equity or equity-linked instruments, while a capped portion may be allocated to specified secondary categories-including IPO subscriptions of investees, debt of investees where equity investment exists, preferential allotments, investments in listed financially weak or sick companies, and investments via special purpose vehicles-with the prescribed allocation to be achieved by the fund's life end.

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