Venture capital fund exemption survives separate schemes, trustees' fiduciary holdings, and uncancelled regulatory registration for tax purposes.

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....Section 10(23FB) exemption is available to a venture capital fund registered as a trust where it operates separately auditable contributory schemes; each scheme need not obtain separate SEBI registration, although its private placement memorandum must be submitted. For the associated-company test, trustees' shares count only when held personally, not when held fiduciary on the Fund's behalf, so fiduciary holdings do not count toward the 15% threshold. A valid, uncancelled SEBI registration establishes the fund's statutory status; absent regulatory action over VCF Regulation breaches, the Income-tax Department cannot independently rely on alleged breaches to deny exemption. The Revenue's appeal was dismissed and the exemption sustained.....