Section 4 in Securities And Exchange Board Of India (Venture Capital Funds) Regulations, 1996
4. Eligibility Criteria.-
For the purpose of the grant of a certificate by the Board the applicant shall have to fulfil in particular the following conditions, namely:-(a)if the application is made by a company :-(i)memorandum of association as has its main objective, the carrying on of the activity of a venture capital fund;(ii)it is prohibited by its memorandum and articles of association from making an invitation to the public to subscribe to its securities;(iii)its director or principal officer or employee is not involved in any litigation connected with the securities market which may have an adverse bearing on the business of the applicant;(iv)its director, principal officer or employee has not at any time been convicted of any offence involving moral turpitude or any economic offence;(v)[it is a fit and proper person;] [Inserted by S.O. 19(E), dated 5.1.1998](b)if the application is made by a trust-(i)the instrument of trust is in the form of a deed and has been duly registered under the provisions of the Indian Registration Act, 1908 (16 of 1908);(ii)the main object of the trust is to carry on the activity of a venture capital fund;(iii)the directors of its trustee company, if any or any trustee is not involved in any litigation connected with the securities market which may have an adverse bearing on the business of the applicant;(iv)the directors of its trustee company, if any, or a trustee has not at any time, been convicted of any offence involving moral turpitude or of any economic offence;(v)[ the applicant is a fit and proper person;] [Inserted by S.O. 19(E), dated 5.1.1998](c)the [applicant] [ Substituted by S.O. 831(E), dated 15.9.2000] has not been refused a certificate by the Board or its certificate has not been suspended under Regulation 30 or cancelled under Regulation 31.(d)[ if the application is made by a body corporate: [Inserted by S.O. 1118(E), dated 17.11.1999](i)it is set up or established under the laws of the Central or State Legislature.(ii)the applicant is permitted to carry on the activities of a venture capital fund.(iii)the applicant is a fit and proper person.(iv)the directors or the trustees, as the case may be, of such body corporate have not been convicted of any offence involving moral turpitude or of any economic offence.(v)the directors or the trustees, as the case may be, of such body corporate, if any, are not involved in any litigation connected with the securities market which may have an adverse bearing on the business of the applicant.]
