Definition
Foreign Venture Capital Investor (FVCI) refers to a foreign investor, typically a venture capital fund, registered with SEBI to invest in venture capital undertakings (VCUs) in India.
Process of Investing
Registration:
FVCIs must register with SEBI and comply with regulations specified under SEBI (Foreign Venture Capital Investors) Regulations, 2000.
Investment Restrictions:
FVCIs can invest in equity or equity-linked instruments or debt instruments of VCUs. Investments are typically in unlisted companies engaged in specific sectors like biotechnology, information technology, etc.
Exit Routes:
FVCIs can exit investments through IPOs, mergers, acquisitions, or transfer to another FVCI.
Reporting Requirements:
FVCIs need to comply with reporting requirements to SEBI and other regulatory bodies.
Our role
An FVCI investor is not required to appoint a Broker for investments in unlisted securities. However, they must engage a broker when investing in listed entities. Kai Securities can partner with the investor to ensure smooth trade executions and effective coordination with other stakeholders, such as Custodians, to facilitate seamless transactions.