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<h1>Venture capital fund approval under income-tax rules requires SEBI registration, prescribed documentation and compliance or approval may be withdrawn.</h1> Approval under Rule 2DA requires Form No. 56AA with supporting documents (trust deed or incorporation certificate; three years' balance sheets and P&L; Forms 56BA and 56CA; SEBI registration certificate). Approval is conditional on SEBI registration, adherence to an investment concentration limit, and maintenance and audit of books with timely submission of the audit report. The Central Government issues a written approval or refusal after hearing and may grant approval for up to three assessment years; approval may be withdrawn for specified noncompliance or SEBI registration suspension or cancellation.