The State Cabinet here on Tuesday decided for institutional arrangement of venture capital fund to meet share capital needs for establishment of innovative entrepreneurship.
All formalities for institutional arrangement will be completed through constitution of Assets Management Committee under Finance Department. The committee will constitute a public limited company with a similar other name approved by Madhya Pradesh Venture Finance limited or Registrar of Companies.
For institutional arrangement of Venture Capital Fund, formalities will be completed to constitute a private limited company to function as trustee of funds under Finance Department. Under it, a public limited company will be formed by a similar other name approved by Madhya Pradesh Venture Finance limited or Registrar of Companies.
After constitution of Assets Company and Trustee Company, the companies will make banks, financial establishments, corporates etc. as shareholders, who may hold minimum 51 per cent shares. Registration certificate will be sought from SEBI for Venture Capital Funds in accordance with SEBI Alternative Investment Funds Regulation, 2012. For operating it, a fund will be constituted under provisions of Indian Trusts Act 1882 under a name approved by Madhya Pradesh MSME Fund or Registrar, Firms and Societies. It will collect and invest funds in accordance with Investment Policy.
The State Government will make a Rs5 crore preliminary investment in the fund as per provisions of SEBI Alternative Investment Funds Regulation, 2012. Additional funds will also be invested if needed.
The Cabinet accorded consent to extend from March 31, 2016 to September 31, 2019, the time-limit for Government security for resetting under Sagar Municipal Corporation’s schemes. Besides, it also gave consent to replace 12.50 percent interest rate by floating rate 10.75.
The Cabinet endorsed Chief Minister’s order to extend term of Union Carbide Poisonous Gas leak Enquiry Commission Bhopal till February 24, 2015.