In order to obliterate the disparity in firm commitment requirements for domestic venture capital funds (VCFs) and foreign venture capital investors (FVCI), SEBI has introduced a new requirement whereby FVCIs are to obtain firm commitment from their investors for contribution of at least US$ 1 million at the time of submission of application seeking registration as FVCIs. Domestic VCFs are required to provide a commitment of Rs. 5 crores (Rs. 50 million) “before the start of operations” by the VCF, while there was hitherto no explicit requirement of commitment for FVCIs that had resulted in a significant amount of ambiguity.
