INDIA: RBI Relaxes Regulations for Overseas India Private Equity and India Venture Capital Funds

Wednesday March 28 2012

It has been reported that The Reserve Bank of India (RBI) has relaxed regulations for overseas India private equity and India venture capital funds, and will now allow them to directly invest into secondary transactions. These foreign investors can buy the stake held by other VC/PE funds in both private and public companies, and also invest in secondary transactions on stock exchanges. P

E/VC funds are registered as venture capital funds (VCFs) or Foreign Venture Capital Investment (FVCI) with the market regulator Securities & Exchange Board of India (SEBI).

SEBI registered FVCIs may also be allowed to invest in securities on a recognized stock exchange subject to the provisions of the SEBI (FVCI) Regulations, 2000, as amended from time to time, as well as the terms and conditions stipulated therein.

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