Illustrative other terms and conditions to be satisfied by Daughter Funds shall include:

• The Daughter Fund shall ensure that all its investee MSMEs obtain Udyam Registration
• The Daughter Fund shall take all requisite steps to ensure compliance with provisions of the Fund Documents (to be executed with SRI Fund) and applicable regulatory and statutory requirements for the Daughter Fund including but not limited to guidelines and provisions of the AIF Regulations, applicable laws, applicable rules, regulations relating to anti-terrorism, anti-money laundering, anti-corruption or anti-bribery, and all other requirements of all Governmental Authorities or agencies and satisfy SRI Fund of the same in such manner as prescribed by NVCFL from time to time.
• The Daughter Fund shall have and/ or develop an Environmental, Social & Governance standards (“ESG”) policy/ framework for its portfolio companies
• The Daughter Fund shall carry out annual impact assessment on growth of investee MSMEs and share an annual impact assessment report within 60 days from the end of the financial year
• The Daughter Fund must participate in periodic quantitative and qualitative surveys/ interactions/ events (including pitch events) as maybe required by NSIC, NVCFL, Ministry of MSME, SRI Fund and SVL at their own cost and also ensure their relevant portfolio companies participate in such events (Funds may include appropriate clauses in their agreements with portfolio companies to this effect).
• All the directors, sponsors and senior investment team members of the Daughter Fund shall be legally eligible (i.e., not barred) to be a director or in a managerial position under Indian law and be fit and proper persons, based on the criteria specified by SEBI
• The investment manager and/ or sponsor of the Daughter Fund shall have the necessary infrastructure and manpower to effectively discharge their activities, as prescribed by SEBI
• 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, (i) is of good standing and repute and (ii) has 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.