Venture Capital Funds for Scheduled Caste

The Government of India has initiated the Venture Capital Funds with the initial capital of Rs.200 crore to promote entrepreneurship and to provide financial assistance for the Scheduled caste entrepreneurs. The Industrial Finance Corporation of India will act as Sponsor, Settler and Asset Management Company (AMC) or Nodal Agency to function the scheme. The Industrial Finance Corporation of India would contribute Rs 50 crore which would comprise Rs.5 crore as the sponsor and Rs 45 crore as the investor. Under this scheme, assistance up to Rs.15 crore for a period up to 6 years will be provided to Scheduled caste entrepreneurs. In this article, we look at the venture capital funds for scheduled caste entrepreneurs in detail.

Objectives of the Scheme

The objectives of the Venture capital Fund are mentioned below:

It is a social initiative to be performed to promote entrepreneurship amongst the Scheduled Caste who are determined towards innovation and growth technologies.
To provide financial assistance to the SC entrepreneurs, who will build wealth and value for society and promote profitable businesses.
The assets so provided will produce forward or backward linkage. It will further build a chain effect in the locality.
To increase the financial structure for SC entrepreneurs and to motivate them for further growth of SC communities.
To develop scheduled caste entrepreneurs economically.
To improve direct and indirect employment generation for the SC in India.

Funding Pattern

Investment under the fund will be classified as follows: Financial assistance upto 5 Crore: Investment under these criteria will be funded maximum upto 75% of the project cost, and the promoters will fund the balance 25% of the project cost. Financial assistance above 5 Crore: Investment under these criteria will be funded maximum upto 50% of the project cost. At least 25% of the estimated project cost has to be financed by the bank or other institutions. The promoters will fund balance 25% of the project cost. The proposals forwarded by Banks or other institutions with the sanction of 25% of the total project shall be considered. In this case, the projects will have to be compulsorily.

Eligibility Criteria

The eligibility criteria for choosing the SC entrepreneurs are as follows:

The projects/units being set up in the manufacturing and services sector ensuring asset creation out of the funds deployed in the group is eligible for the scheme.
While choosing the SC entrepreneurs, women SC entrepreneurs are preferred.
The companies applying for the assistance of more than Rs. 5 Crore, should preferably get their project appraised by the banks or Financial Institutions before requesting assistance under the scheme.
For companies with authorised assistance of above Rs. 5 Crore, the money issued by the Trust or Fund Manager would be in proportion to the loan released by the bank.
Proofs of being SC (Caste Certificate) will have to be furnished by the entrepreneur at the time of submitting the proposal.
The scheduled caste promoters of Investee Company will not dilute their stake below 60% in the company till the exit under the project. However, in the event of any change of the quasi-equity instrument under the plan, strategic investments, buyouts etc., which result into the dilution of the stake of SC Entrepreneur, prior written approval from Asset Management Company (AMC) in such case is required.

Documents Required

The specified documents to be submitted along with the application form are as follows.

MOA and AOA of the company.
Scheduled Caste Certificate of the Promoters.
KYC documents such as three years’ IT returns of the company (including promoters PAN card, Address proof, two Passport Photographs etc.).
Certified Shareholding Pattern of the Company.
Chartered Accountant certified the Net worth statement of promoters.
Latest Sanction letter of the current banker, if any.
Due diligence report of the banker, if any.
Last three years’ Annual Report of the company.
Quarterly results post last available annual report.
Other, if any, as required at the time of proposal submission.

Online Application Procedure for Scheme

To apply for the venture capital fund scheme for scheduled caste, follow the steps mentioned below: Visit Official Portal Step 1: The applicant has to visit the official portal of Venture capital fund for scheduled castes. Apply Online Step 2: Click on the “Apply Online” tab which is present on the homepage of the portal. [caption id="attachment_73646" align="aligncenter" width="677"]

Venture Capital Funds for Scheduled Caste -Image 1 Step 3: Now, the user will be redirected to the next page where you need to click on the “Apply online” button. [caption id="attachment_73647" align="aligncenter" width="620"]

Venture Capital Funds for Scheduled Caste -Image 2 Complete the Details Step 4: On the next screen, the online application form will open up fill the application form with the required details. [caption id="attachment_73648" align="aligncenter" width="707"]

Venture Capital Funds for Scheduled Caste -Image 3 Upload Documents Step 5: After filling the application form upload the specified documents along with the application and click on the “Submit the Application” button for successful registration. Receive Reference Number Step 6: Upon submission, you will be provided with the acknowledgement number for further reference. Note: After receiving the application and information from the company your request for financing a project will be processed within two or three months from the date of application.

Applying through Email

The user can download the application form from the same portal. The application form for the venture capital fund scheme is reproduced below for your quick reference. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/02/Download-Application-Form.pdf"] Fill the application form with necessary information and attach the documents along with the form and forward the completed application form to the mail id specified here. Email Id: funds@ifciventure.com

Track Application Status

This portal facility the user to track the status of your application online. Step 1: Click on the “Application Status” tab which is under the apply online menu. Step 2: Enter your application reference number on the text box to view the status of your application.

Company Registration

OPC Registration