Operational Guidelines for Foreign Venture Capital Investors and Designated Depository Participants

SEBI vide notification dated September 26, 2024 has issued Operational Guidelines for Foreign Venture Capital Investors(FVCIs) and Designated Depository Participants(DDPs). These operational guidelines (“guidelines”) for Foreign Venture Capital Investors (“FVCIs”) and Designated Depository Participants (“DDPs”) are issued to facilitate smooth transition to the amended FVCI regime and operationalisation of the amended provisions of SEBI (Foreign Venture Capital Investors)Regulations, 2024 (FVCI Regulations”).

Any FVCI failing to engage a DDP by March 31,2025, shall not be permitted to make any further investment and shall liquidate:

1. Investments in listed securities, by March 31, 2026
2. other investments, by March 31, 2027

Remittance of the proceeds of such sale shall be subject to compliance with applicable KYC, AML/CFT requirements. Post liquidation of investments within the said time-period, the FVCI shall apply for surrender of its registration within 30 days.