CCEA approves US$ 250 million investment in DHFL Venture Capital Funds by Overseas Investors

The Cabinet Committee on Economic Affairs today gave its approval for permitting Overseas investors to invest, upto an aggregate amount of US$250 million, through one or more special purpose companies or their subsidiary/subsidiaries, in Class B Units of DREAM II of DHVL Venture Capital Fund for making investments in FDI compliant projects of DREAM II scheme of DHVL Venture Capital Fund. The approval would be subject to compliance of venture capital regulations, Press Note 9 of 99 series for downstream investment and Press Note 2 of 2005 series for construction development activities.

DREAM-II a scheme of DHFL Venture Capital Fund, a trust registered with SEBI as a domestic venture capital fund under SEBI (Venture Capital Funds) Regulations, 1996 propose to invite investments by various overseas investors in units to be issued by DREAM II. DREAM II shall be managed by DHFL Venture Capital India Private Limited, whose principal shareholder includes Dewan Housing Finance Corporation Ltd., a company engaged in home loan financial activities and registered with the National Housing Bank as a Housing Finance Company.

DREAM II Scheme proposes to issue 4 Classes of Units as follows:

(i) Class A units will be issued to only domestic investors

(ii) Class B units will be issued to offshore investors

(iii) Class C units will be issued as ‘Carry Units’ to the investment manager being a domestic investor for carry (i.e., share in profits from the Units issued to domestic investors i.e., Class A Units)

(iv) Class D units will be issued as ‘Carry Units’ to the investment manager being a domestic investor for Carry (i.e., share in profits from the Units issued to offshore investors i.e., Class B Units)

Source : Press Information Bureau

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