NATIONAL STOCK EXCHANGE OF INDIA LIMITED

DEPARTMENT : SBU - EDUCATION

NCFM COURSE OUTLINE
VENTURE CAPITAL AND PRIVATE EQUITY MODULE

Private Equity Background

A.
B.
C.
D.
E.
F.

Evolution of Finance for Business

VC Funds and PE Funds
Fund Structure
Leveraging in Funds
Forms of Investment by Funds
J Curve
G. Measuring the Performance of Investments and PE Fund

Getting Ready for Growth Capital from Funds

A. PE Investment Criteria
B. Role of Facilitaters
C. Resource Mobilisation, Valuation & Dilution

Business Model, Business Plan & Financial Model

A. Business Model
B. Business Plan
C. Financial Model
1. Background
2. Assumptions
3. Cost of Project & Means of Financing
4. Projected Profit & Loss Account
5. Projected Balance Sheet
6. Projected Funds Flow
7. Project IRR
8. Equity IRR
9. Loan Servicing Capability
10. Valuation
11. Sensitivity Analysis
12. Building Scenarios

Regd. Office : Exchange Plaza, BandraKurlaComplex, Bandra (E), Mumbai 400 051

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Buyouts and other Transactions

A.
B.
C.
D.

LBO
MBO
Project-based Funding Transactions
Distressed Assets Funding Transactions

PE Investment Process
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.

Sourcing of Proposals
Initial contact / Flier
Non-Disclosure Agreement (NDA)
Information Memorandum
Management Presentation
Initial Due Diligence
Preliminary Investment Note
Non-binding Letter of Intent
Final Due Diligence
Final Investment Memorandum
Signing the Term Sheet
Closure of the Deal

Documentation and Typical Investment Conditions

A. Typical Investment Conditions
B. Subscription Agreement
C. Shareholders Agreement

Tax Aspects of PE Investment

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.

Section 10(23FB) of Income Tax Act, 1961

Section 10(47) of Income Tax Act, 1961
Income Types
Securities Transaction Tax (STT)
Tax on Distributed Profit (Dividend Distribution Tax)
Taxability of Interest
Taxability of Short Term Capital Gains on Debt
Taxability of Long Term Capital Gains on Debt
Taxability of Short Term Capital Gains on Equity
Taxability of Long Term Capital Gains on Equity
Taxation of Non-Residents

Post-Investment Support, Monitoring and Exit

A. Support
B. Monitoring
C. Exit

Regd. Office : Exchange Plaza, BandraKurlaComplex, Bandra (E), Mumbai 400 051

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Regulation of PE Funds
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

SEBI (Alternate Investment Funds) Regulations, 2012

Categories of AIFs
Eligibility Criteria
Conditions & Restrictions for Investment in Fund
Tenure
Listing
Conditions & Restrictions for Investment by Fund
General Obligations
Maintenance of Records
Winding up of AIF

EMERGE: NSEs Platform for SMEs

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Emerge Introduction
Benefits of Listing for Companies
Benefits of Listing for Investors
Eligibility Criteria
Listing Requirements
Listing Fees
Selecting a Merchant Banker for the Issue
Role of Merchant Bankers in Emerge
Role of Market Makers in Emerge
The Emerge Trading Platform

Regd. Office : Exchange Plaza, BandraKurlaComplex, Bandra (E), Mumbai 400 051

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