ARTICLE · 23 OCTOBER 2024

Setting Up A Fund In India: Guide For First Time Fund Managers

Thinking Legal

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This article provides a step-by-step guide for first-time fund managers in India, outlining the process of setting up a private equity or venture capital fund.

IndiaFinance and Banking

Vaneesa Agrawal

This article provides a step-by-step guide for first-time fund managers in India, outlining the process of setting up a private equity or venture capital fund.

Key Points:

What is a Fund? A private pool of investments managed by professionals and registered with SEBI (Securities and Exchange Board of India).
Fund Categories:
- Category I (Venture Capital Fund): Offers tax benefits and invests in unlisted companies.
- Category II Fund: More flexibility in investment strategies but no tax benefits.
Steps to Setting Up a Fund:
1. Choose a fund category (I or II).
2. Understand investment conditions (minimum investment, investable funds, etc.).
3. Decide on the fund structure (trust, company, etc.).

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