Scheme Sponsor: Ministry of MSME
Target Group: MSMEs
Mode of Assistance: Funding
About the Scheme:
The Fund seeks to accomplish the following goals by lending capital support to the Daughter
Funds so they can subsequently provide growth capital to MSMEs through debt, quasi-equity,
and equity: –
- Encouraging the MSME sector to grow more quickly, which will spark the economy and generate jobs.
- Assisting businesses with the potential to advance above the MSME category and win national or international competitions.
- Assistance for MSMEs that produce goods, services, and pertinent technology to help India become self-suffiient Assistance Pattern: The SRI Fund will use a “Fund-of-Fund” investment model, investing in SEBI- registered Category I and II Alternative Investment Funds (“Daughter Funds”), which will then invest in MSMEs. The Daughter Funds must invest at least 5 times the capital contribution received from SRI Fund (net of fees and expenses) in MSMEs as specified by the MSMED Act. Requirements:
- The Daughter Fund would ensure that all of its investee MSMEs receive Udyam Registration.
- The Daughter Fund must comply with the Fund Documents (to be executed with SRI Fund) and all relevant regulatory and statutory requirements, including those related to anti-terrorism, anti-money laundering, anti-corruption, and anti-bribery.
- There should be no material arrears of statutory dues and no government enquiries/ proceedings/ prosecution/ legal action pending/ initiated against the Daughter Fund/ sponsor/ investment manager/ trustee/ promoters/ directors/ partners except as indicated in application to SRI Fund
- The Daughter Fund shall only raise/ have raised/ receive commitments/ have received contribution from Eligible Person/Investor, where Eligible Person/Investor shall mean a person who: i. complies with know- your- customer (KYC) norms stipulated by SEBI. ii. is willing to execute necessary documentation to establish that the Eligible Person/ Investor, iii. is of good standing and repute andhas not been convicted for any material offences under any applicable law.
- If the Daughter Fund does not provide the required information stipulated by SRI Fund within prescribed timelines, drawdowns from SRI Fund will not be processed.
- Any Conflict of Interest shall have to be declared upfront, at the time of application and/or as-and-when it arises, to the Investment Manager
- Any other terms or conditions as may be specified by SRI Fund, NVCFL Board or Government of India
- The Detailed Application Form submitted by prospective Daughter Fund shall need to comply with the evaluation criteria of SRI Fund to be eligible for seeking funds.
More Information on:
https://dcmsme.gov.in/CLCS_TUS_Scheme/SRI_Fund/Scheme_Guidelines.aspx