Section 3 in Securities And Exchange Board Of India (Venture Capital Funds) Regulations, 1996
3. Application for Grant of Certificate.-
(1)Any company or trust [or a body corporate] [Inserted by S.O. 831(E), dated 5.2.1998 ] proposing to carry on any activity as a venture capital fund on or after the commencement of these regulations shall make an application to the Board for grant of a certificate.(2)Any company or trust [or a body corporate] [Inserted by S.O. 831(E), dated 5.2.1998 ], who on the date of commencement of these regulations is carrying any activity as a venture capital fund without a certificate shall make an application to the Board for grant of a certificate within a period of three months from the date of such commencement:Provided that the Board, in special cases, may extend the said period upto a maximum of six months from the date of such commencement.(3)An application for grant of certificate under sub-regulation (1) or subregulation (2) shall be made to the Board in Form A and shall be accompanied by a nonrefundable application fee as specified in Part A of the Second Schedule to be paid in the manner specified in Part B thereof.(4)Any company or trust [or a body corporate] [Inserted by S.O. 831(E), dated 5.2.1998 ] referred to in sub-regulation (2) who fails to make an application for grant of a certificate within the period specified therein shall cease to carry on any activity as a venture capital fund.(5)The Board may in the interest of the investors issue directions with regard to the transfer of records, documents or securities or disposal of investments relating to its activities as a venture capital fund.(6)The Board may in order to protect the interests of investors appoint any person to take charge of records, documents, securities and for this purpose also determine the terms and conditions of such an appointment.
