SEBI has released operational guidelines for Foreign Venture Capital Investors (FVCIs) and Designated Depository Participants (DDPs) following amendments to the SEBI (Foreign Venture Capital Investors) Regulations, 2000. These guidelines are intended to facilitate a smooth transition to the updated regulatory framework, which will come into effect on January 1, 2025. Here’s a summary of the key points:
The SEBI (Foreign Venture Capital Investors) Regulations, 2000 were amended via a notification on September 5, 2024.The amendments cover several aspects including the registration process for FVCIs through DDPs, eligibility criteria, and the renewal of registrations.These amendments will be effective from January 1, 2025.
To ensure a smooth transition to the new FVCI framework and to operationalize the amended provisions, SEBI has issued detailed operational guidelines (provided in Annexure-1 of the circular).
These guidelines will help both FVCIs and DDPs navigate the new regulatory requirements.
The provisions of this circular, including the operational guidelines, will come into force starting January 1, 2025
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