Investment concentration limits for migrated venture capital fund require diversified unlisted equity focus and prescribe permitted secondary investments. Regulation 19AD requires a migrated venture capital fund to limit exposure to any single undertaking, bars investment in associated companies, and allows overseas securities only subject to RBI and Board conditions. The fund must allocate the majority of investable funds to unlisted equity or equity linked instruments of venture capital undertakings, with a capped portion available for specified secondary investments (including IPO subscriptions of portfolio companies, debt of equity investees, preferential allotments with lock in, investments in listed financially weak companies, and SPVs). Allocation targets must be met by the fund's life end; merchant banker underwriting or market making transactions are excepted, and the Board may add requirements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Investment concentration limits for migrated venture capital fund require diversified unlisted equity focus and prescribe permitted secondary investments.
Regulation 19AD requires a migrated venture capital fund to limit exposure to any single undertaking, bars investment in associated companies, and allows overseas securities only subject to RBI and Board conditions. The fund must allocate the majority of investable funds to unlisted equity or equity linked instruments of venture capital undertakings, with a capped portion available for specified secondary investments (including IPO subscriptions of portfolio companies, debt of equity investees, preferential allotments with lock in, investments in listed financially weak companies, and SPVs). Allocation targets must be met by the fund's life end; merchant banker underwriting or market making transactions are excepted, and the Board may add requirements.
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