India's first social sector pvt equity fund gets SEBI nod

India's first social venture fund, Incube Connect Fund (Incube), has been accorded registration by market regulator Sebi, a company official said.

The Ahmedabad-based social venture fund has been accorded registration by SEBI under SEBI Alternative Investment Fund (AIF) regulation 2012, a company statement said.

Incube, a nine year Rs 200 crore social sector fund, promoted by Incube Ventures Pvt Ltd (IVPL), will primarily focus on sectors of social relevance like healthcare delivery products and services, vocational education and skill development, clean energy and sustainable rural business innovations, a company statement said.

"Market based investment approach tends to focus on financial returns but tends to ignore the social aspect of sustainable development. Incube has been constituted to find a mid way between charity and business," said Mani Iyer of IVPL.

"The objective of Incube is to back entrepreneurs typically at the bottom of the pyramid in terms of their ability to raise capital," he said.

The life of private equity fund is nine years and those investing into it will get returns on fund liquidation.

IVCL, the promoter of Incube, was incorporated in August 2010 with authorised share capital of Rs one crore and subscribed and paid up capital of Rs 97.50 lakh, the statement said.

The company has been running an idea incubation center -In-CUBE- with enabling eco-system, which is currently involved in incubating half a dozen nascent business ideas of social relevance, it said.