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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....2 26449019 to 9022 Email: [email protected] SEBI/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....

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.... for short) to the venture capital undertaking (VCU, for short) or its promoter; b)     such transfer should be pursuant 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 ....

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....of the underlying purpose of regulation 3(1)(ia) of the Takeovers Regulations, it is clarified that the expression 'venture capital undertaking' referred to 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 reg....