Securities And Exchange Board Of India - Subsection
Section 19A(3) in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
(3)"company with family connection" means:a. if the angel investor is an individual,i. any company which is promoted by such an individual or his relative; orii. any company where the individual or his relative is a director; oriii. any company where the person or his relative has control, or shares or voting rights which entitle them to fifteen percent or more of the shares or voting rights in the company.Explanation I: For the purpose of this clause, "relative" means a person as defined under [sub-section 77 of section 2 of the Companies Act, 2013] [Substituted by the SEBI (Alternative Investment Funds)(Amendment) Regulations, 2018, w.e.f. 01-06-2018. Prior to the substitution, it read as 'section 6 of the Companies Act, 1956 (1 of 1956)'.].Explanation II: For the purpose of this clause, "control" shall have the same meaning as assigned to it under sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.b. if the angel investor is a body corporate,i. any company which is a subsidiary or a holding company of the investor;orii. any company which is part of the same group or under the same management of the investor; orExplanation: For the purpose of this clause, "part of the same group" and "under the same management" shall have the same meaning as assigned to it under regulation 23 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.iii. any company where the body corporate or its directors/partners have control, or shares or voting rights which entitle them to fifteen percent or more of the shares or voting rights in the company.Explanation: For the purpose of this clause, "control" shall have the same meaning as assigned to it under sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
