FVCI stands acronym for Foreign Venture Capital Investor’ (FVCI). FVCIs are investors incorporated and established outside India and registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000. They can make an investment in India in terms of schedule 7 of FEMA 20(R) as per the conditions prescribed therein.
The investment made by FVCIs from abroad to be received through banking channels or out of funds held in a foreign currency account and/ or a Special Non-Resident Rupee (SNRR) account maintained by the FVCI with an AD bank in India. The foreign currency account and SNRR account shall be used only and exclusively for transactions under the relevant Schedule. The sale proceeds/maturity proceeds (net of taxes) of securities may be repatriated or credited to the foreign currency account or a Special Non-resident Rupee Account of the FVCI.
Previously, Alternative Invest Fund (AIF), Infrastructure Investment Trust (InvIt), and Real Estate Investment Trust (REIT) commonly known as investment vehicles were included under the erstwhile SEBI (Venture Capital Funds) Regulations, 1996. These entities are now excluded under Foreign Venture Capital Investors Regulations, 2000