Rule 51 — Other conditions required to be fulfilled by the original fund

Parent Act Section(s): Section 70

Full Text

Other conditions required to be fulfilled by the original fund.– (1) For the purposes of section 70(2) [Table: Sl No.5, C(a)(A)(iv)], the original fund, in a case where a capital asset is transferred to a resultant fund being a Category III Alternative Investment Fund, shall fulfil the condition that the aggregate participation or investment in the original fund, either directly or indirectly, by persons resident in India does not exceed 5% of the corpus of such fund at the time of such transfer. (2) For the purpose of sub-rule (1) the expressions “original fund” and “resultant fund” shall have the meanings respectively assigned to them in section 70(2) [Table: Sl No.5, C(a) and (c)].

[To be populated — interpretive notes, circular references, case law pointers]