Income Tax Act, 2025
Section 4: Subs. by Act 17 of 2013, s. 5 for the Explanation 1 (w.e.f. 12013).
4. Subs. by Act 17 of 2013, s. 5 for the Explanation 1 (w.e.f. 12013).
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(B) has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund and is regulated under the Securities and
Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (hereinafter
referred to as the Alternative Investment Funds Regulations) made under the Securities and
Exchange Board of India Act, 1992 (15 of 1992), and which fulfils the following conditions,
namely:—
(i) it is not listed on a recognised stock exchange;
(ii) it has invested not less than two-thirds of its investible funds in unlisted equity
shares or equity linked instruments of venture capital undertaking; and
(iii) it has not invested in any venture capital undertaking in which its director or a
substantial shareholder (being a beneficial owner of equity shares exceeding ten per cent.
of its equity share capital) holds, either individually or collectively, equity shares in
excess of fifteen per cent. of the paid-up equity share capital of such venture capital
undertaking;
(b) “venture capital fund” means a fund—
(A) operating under a trust deed registered under the provisions of the Registration
Act, 1908 (16 of 1908), which—
(I) has been granted a certificate of registration, before the 21st day of May, 2012, as
a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or
(II) has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund under the Alternative Investment
Funds Regulations and which fulfils the following conditions, namely:—
(i) it has invested not less than two-thirds of its investible funds in unlisted equity
shares or equity linked instruments of venture capital undertaking;
(ii) it has not invested in any venture capital undertaking in which its trustee or
the settler holds, either individually or collectively, equity shares in excess of fifteen
per cent. of the paid-up equity share capital of such venture capital undertaking; and
(iii) the units, if any, issued by it are not listed in any recognised stock
exchange; or
(B) operating as a venture capital scheme made by the Unit Trust of India established
under the Unit Trust of India Act, 1963 (52 of 1963);
(c) “venture capital undertaking” means—
(i) a venture capital undertaking as defined in clause (n) of regulation 2 of the Venture
Capital Funds Regulations; or
(ii) a venture capital undertaking as defined in clause (aa) of sub-regulation (1) of
regulation 2 of the Alternative Investment Funds Regulations;]]
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has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund and is regulated under the Securities and
Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (hereinafter
referred to as the Alternative Investment Funds Regulations) made under the Securities and
Exchange Board of India Act, 1992 (15 of 1992), and which fulfils the following conditions,
namely:—
it is not listed on a recognised stock exchange;
it has invested not less than two-thirds of its investible funds in unlisted equity
shares or equity linked instruments of venture capital undertaking; and
it has not invested in any venture capital undertaking in which its director or a
substantial shareholder (being a beneficial owner of equity shares exceeding ten per cent.
of its equity share capital) holds, either individually or collectively, equity shares in
excess of fifteen per cent. of the paid-up equity share capital of such venture capital
undertaking;
“venture capital fund” means a fund—
operating under a trust deed registered under the provisions of the Registration
Act, 1908 (16 of 1908), which—
has been granted a certificate of registration, before the 21st day of May, 2012, as
a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or
has been granted a certificate of registration as Venture Capital Fund as a subcategory of Category I Alternative Investment Fund under the Alternative Investment
Funds Regulations and which fulfils the following conditions, namely:—
it has invested not less than two-thirds of its investible funds in unlisted equity
shares or equity linked instruments of venture capital undertaking;
it has not invested in any venture capital undertaking in which its trustee or
the settler holds, either individually or collectively, equity shares in excess of fifteen
per cent. of the paid-up equity share capital of such venture capital undertaking; and
the units, if any, issued by it are not listed in any recognised stock
exchange; or
operating as a venture capital scheme made by the Unit Trust of India established
under the Unit Trust of India Act, 1963 (52 of 1963);
“venture capital undertaking” means—
a venture capital undertaking as defined in clause
of regulation 2 of the Venture
Capital Funds Regulations; or
a venture capital undertaking as defined in clause
of sub-regulation
of
regulation 2 of the Alternative Investment Funds Regulations;]]
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