Venture capital scheme investment restrictions govern corpus limits, eligible investments, related-party dealings, and differential distribution rights. Venture Capital schemes are subject to corpus limits and must deploy at least 80 per cent of their corpus in eligible Investee Companies or qualifying ... Summary
Venture capital scheme investment restrictions govern corpus limits, eligible investments, related-party dealings, and differential distribution rights.
Venture Capital schemes are subject to corpus limits and must deploy at least 80 per cent of their corpus in eligible Investee Companies or qualifying schemes. Follow-on investment in older Investee Companies is permitted only under specified conditions, including consistency with the scheme's stated strategy, exclusion of certain investors from later rounds, and preservation of the scheme's fully diluted beneficial-interest level. Related-party investments and securities transactions generally require investor approval, subject to a disclosed fund of funds exception. Differential distribution rights through senior, junior or subordinate units must follow the applicable framework.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.