SEBI (Venture Capital Funds) (Amendment) Regulations, 2010 – Insertion of regulation 12A

Notification No. LAD–NRO/GN/2010-11/07/1100, dated 13-4-2010

In exercise of the powers conferred by Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to amend the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996, namely :—

1. (i) These regulations may be called the Securities and Exchange Board of India (Venture Capital Funds) (Amendment) Regulations, 2010.

(ii) These regulations shall come into force on the date of their publication in the Official Gazette.

2. In the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996,—

(i)    after   regulation    12,   the   following regulation shall be inserted, namely:—

" Investment in securites listed on SME exchange.

12A. The venture capital fund may enter into an agreement with merchant banker to subscribe to the unsubscribed portion of the issue or to receive or deliver securites in the process of market making under Chapter XA of the Securites and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the provisions of regulation 12 shall not apply in case of acquisition or sale of securities pursuant to such subscripttion or market making."