Interpretive Circular under Regulation 5 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997

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..../CFD/DCR/01/2006 December 11, 2006 To All Registered Merchant Bankers, Venture Capital Funds and Foreign Venture Capital Investors. Dear Sirs, Sub. : Interpretive Circular under Regulation 5 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 Regulation 3(1) (ia) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regu....

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.... to an agreement between them. 3. In certain cases, interpretational issues have arisen as to the scope of the term 'shares' occurring in the above clause, that is whether the term refers to the shares of a venture capital undertaking in which the VCF/FVCI had initially invested (and which subsequently gets listed) or to the shares of any other listed company. 4. The purpose behind providing exe....

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....o in regulation 3(1)(ia) is not restricted by the aforesaid definitions in the VCF and FVCI Regulations in so far as they require that the shares of VCU should not be listed. It is further clarified that the transfer of shares referred to in regulation 3(1)(ia) is a transfer of the shares of an unlisted venture capital undertaking held by a VCF or FVCI, which subsequently got listed, in favour of ....