11/6/2022 0 Comments Private equity vs venture capital![]() The fund’s capital must be at least 15 crores (150 million) rupees. #PRIVATE EQUITY VS VENTURE CAPITAL REGISTRATION#Minimum requirements to be met for the registration of the fund Other fund as prescribed by the Board from time to timeĢ.1. It is a fund established to make investments in any sector with high risks. It is a fund investing in equity or securities convertible into ordinary shares or debt instrument or credit or any other instruments related to equity for the operation of businesses whose securities are at the initial phase of operation, not listed with stock exchange market or in the business related to innovative knowledge, skills or competency or new goods, services, technology or intellectual property. It is a fund investing in equity or securities convertible into ordinary shares or debt instrument or credit or any other instruments related to equity or investing as per the desire of partners of the company. The fund manager may apply for creation of any of the following specialised funds by submitting an application along with specific documents prescribed under the Rules: a. The licensed fund manager shall then be required to obtain further approval from SEBON prior to establishing and operating a specific fund. ![]() #PRIVATE EQUITY VS VENTURE CAPITAL LICENSE#The final license is granted only upon inspecting the infrastructure, human resource and detailed internal policy of the applicant company. However, in practice, SEBON primarily grants a Letter of Intent (LOI) upon preliminary review of the documents submitted to them. Following the submission, SEBON shall grant a certificate of registration of fund manager to the applicant within 35 days from such submission. A company registered in Office of Company’s Registrar with paid-up capital of at least 2 crores (twenty million) rupees and with “fund management” entailed as one of its objectives in the memorandum of association shall be eligible to operate as a fund manager.įor the purpose of establishment and registration of the fund manager, an application is to be submitted to SEBON along with specific set of documents prescribed in the Rules. ![]() Prior to creating and operating any specialized investment fund, it is mandatory for such fund manager to obtain a Fund Manager license from SEBON. For Nepali fund managers and funds on operating specialized investment funds The Rules provides that only a registered fund manager is permitted to create and operate such funds in Nepal. The Rules incorporates funds such as private equity, venture capital, hedge fund or any other fund in Nepal within the ambit of Specialised Investment Funds. The Securities Board of Nepal (“ SEBON”) has formulated the Specialized Investment Fund Rules, 2075 (2019) (“ Rules”) that lays down requirements for the establishment and operation of Specialized Investment Funds (also understood as alternative investment funds). ![]()
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