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March 10th, 2007
It is proposed to amend the clause so as to provide that such exemption will now be available only in respect on income of a venture capital company or venture capital fund from investment in a venture capital undertaking engaged in certain specified businesses or industries. For this purpose, it is also proposed to amend the definition of a venture capital undertaking to mean such domestic company whose shares are not listed in a recognised stock exchange in India.
Further, the company must be engaged in the business of nanotechnology, information technology relating to hardware and software development, seed research and development, bio-technology, research and development of new chemical entities in the pharmaceutical sector, production of bio-fuels, or building and operating composite hotel-cum-convention centre with seating capacity of more than three thousand, or engaged in the diary or poultry industry.
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