Venture Capital and Private Equity Module (Intermediate)

In recent years, the importance of small and medium enterprises (SMEs) for economic development has become interesting. In such cases, the Venture Capital and Private Equity Module plays a crucial role in constituting a valuable resource for a firms’ growth, especially for more innovative SMEs. This is so that they can support economic development and innovation in the economy. Here, Private equity refers to one of the elements of a good entrepreneurial ecosystem. In the past few decades, it came out as a serious source of finance for start-ups, growing companies and takeover transactions.

In, Venture Capital and Private Equity Module, you will learn about:

• Firstly, the role of private equity in the country and the difference between various forms of early-stage finance.
• Secondly, how private equity funds are structured and their format of operation.
• Lastly, comprehending the entire gamut of post-investment support that can come with private equity capital.

Target Audience:

• Firstly, Students
• Secondly, Finance Professionals
• Thirdly, Entrepreneurs
• Then, Employees of SMEs
• Lastly, Individuals with  interest in this subject

Venture Capital and Private Equity Module: Exam Details

• With over 200 test centers, NCFM provides both online and self-study-based tests. These tests are carried out all throughout India.
• Exam questions for the NCFM Venture Capital and Private Equity Module can only be provided in English.
• During the Venture Capital and Private Equity Module exam, an Open Office Spreadsheet will be provided with an allowance for all types of calculators during the test.
  • But, there will be a 0.25% negative marking, if there are any incorrect answers.

In Venture Capital and Private Equity Module:

• Firstly, there will be a total of 70 questions that have to be completed in 120 minutes.  The questions will be objective type. That is to say, for every question, you will find four / or five alternative answers. You have to select the correct one out of them.
• Secondly, to pass the Venture Capital and Private Equity Module, it is necessary to score 60%.
• Lastly, the Venture Capital and Private Equity Module exam will cost Rs.2006/ inclusive of GST. And, you must know that the NCFM certification is only valid for 5 years.

Exam Registration

Candidates can register for the NCFM exam online by accessing the link ‘Online Registration’ which is available under ‘Education’. After opening the link, click Certifications and then, complete the Registration. Then, after completing, you will receive a unique NCFM registration number along with a user id and password. Side by side, a confirmation message will be sent both on your email id and mobile number provided during registration. After logging in you can:

• Firstly, make payment for the NCFM exam.
• Secondly, register or enroll for the test.
• Thirdly, update the latest address details.
• Lastly, check the status of study material as well as view certificates.

During Registration:

• Firstly, provide the latest address in an online NCFM profile. To update addresses candidates have to access the link ‘Edit Profile’ available in their NCFM online login.
• Secondly, the NCFM registration number is unique. And, candidates have to use the same NCFM registration number during the module enrollment.

NCFM Venture Capital And Private Equity Module Course Structure

NCFM provides a course outline for the Venture Capital and Private Equity Module to help in understanding the topics in a sequential manner. This include:

1. Private Equity Background

• Evolution of Finance for Business
• VC Funds and PE Funds
• Fund Structure
• Leveraging in Funds
• Forms of Investment by Funds
• J Curve
• Measure the Performance of Investments and PE Fund

2. Getting Ready for Growth Capital from Funds

• PE Investment Criteria
• Role of Facilitators
• Resource Mobilization, Valuation & Dilution

3. Business Model, Business Plan & Financial Model

• Business Model
• Secondly, Business Plan
• Financial Model
  • Background
  • Assumptions
  • Cost of Project & Means of Financing
  • Projected Profit & Loss Account
  • After that, Projected Balance Sheet
  • Projected Funds Flow
  • Project IRR
  • Equity IRR
  • Loan Servicing Capability
  • Valuation
  • Sensitivity Analysis
  • Building Scenarios

4. Buyouts and other Transactions

• LBO
• MBO
• Project-based Funding Transactions
• Distressed Assets Funding Transactions

5. PE Investment Process

• 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

6. Documentation and Typical Investment Conditions

• Typical Investment Conditions
• Subscription Agreement
• Shareholders’ Agreement

7. Tax Aspects of PE Investment

• 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
• Then, Taxability of Long Term Capital Gains on Debt
• Taxability of Short Term Capital Gains on Equity
• After that, Taxability of Long Term Capital Gains on Equity
• Taxation of Non-Residents

8. Post-Investment Support, Monitoring and Exit

• Support
• Monitoring
• Exit

9. EMERGE: NSE’s Platform for SMEs

• 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

For More Check: Venture Capital and Private Equity Module FAQs

NCFM Procedures

NCFM procedures help candidates to understand the pattern of the exams. And, this makes it easier by providing all the details in a stepwise manner. Some of them include:

1. Making Payment

• Payment can be made online by accessing through online NCFM login.
• Then, under Education click Certifications and start online registration or enrollment.
• You must know that the validity of the NCFM test fees is revised from 180 days to 90 days from the date of receipt of payment.
  • That is to say, it is necessary to enroll for the NCFM test within 90 days from the date of receipt of payment failing. However, fees once paid can not be refunded.

2. Test Taking Procedure

• Firstly, there are designated NSE test centers for giving exams. The test centers can be selected at the time of enrollment.
• Secondly, the test center has a policy in which candidates are required to reach the exam center 30 minutes prior to the test time.
• Thirdly, an original Photo ID that can be a PAN card, Driver’s License, Passport, Employee ID, Voter’s ID card, or Student ID card, is required for the verification on the exam day. 
• Next, a backup sheet and rough sheet(s) will be provided to the candidates and also they can bring the scientific calculator and a pen during the test. 

3. Uploading Photo

• Candidates can upload photos using the ‘Upload Photo’ link which is available in their NCFM online login.
• The uploaded photo should have passport size (3 X 3 cms or 1 X 1 inch or 150 X 180 pixels). And, it should be in JPEG format with size below 30 KB.

4. Issuing Certificate

• Candidates will receive the certification for modules after passing the exam at the test center itself. However, those getting failed in the exam will receive a scorecard at the test center.
• The candidates need to ensure that they must collect their results before leaving the test center.
• Further, candidates can view the certificate online under the link ‘Query/Report’ available in their NCFM online login portal.

Venture Capital and Private Equity Module: Study Guide

1. Getting Familiar with Exam Objectives

For NCFM Venture Capital And Private Equity Module Mock Certification, NCFM provides the course outline that has topics divided into various sections and subsections. This course outline helps candidates to understand the concepts more accurately and start their preparation in a sequential way. The topics for Venture Capital and Private Equity Module includes:

• Firstly, Private Equity Background
• Secondly, Getting Ready for Growth Capital from Funds
• Thirdly, Business Model, Business Plan & Financial Model
• Fourthly, Buyouts and other Transactions
• Then, PE Investment Process
• After that, Documentation and Typical Investment Conditions
• Next, Tax Aspects of PE Investment
• Then, Post-Investment Support, Monitoring, and E
• Lastly, EMERGE: NSE’s Platform for SMEs

2. NSE Knowledge Hub

NSE knowledge hub provides personalized and community-based learning with an AI-First and Mobile-First ecosystem. This knowledge hub is powered by a unique Artificial Intelligence (AI) powered learning platform to help in financial learning. Moreover, this supports academic institutions for preparing advanced future-ready talent for the financial services industry. Using NSE Knowledge Hub candidates can:

• Firstly, become a part of a growing learning community.
• Secondly, have access to unlimited content and resources.
• Thirdly, get assistance from experts in this field.
• Lastly, learn from anywhere.

Further, NSE knowledge hub includes methods such as:

• Content Discovering
  • In this, candidates will get familiarity with banking, insurance and finance topics in which they discover content in various domains of finance.

• Continuous learning
  • This provides formal and informal learning that contains hours of arranged content tailored to the individuals areas of interests and goals.

• Deep skills
  • This provides deep skilling pathways at a marketplace with well-known providers of courses, assessments, labs and credentials.

3. NSE Study Material

NSE provides study material for its module exams that includes a workbook. Only when you’ve paid for the module can you get this workbook. You can download by login into your account and selecting E-Library from the drop-down menu. Candidates can also purchase these Workbooks for NCFM modules by writing a request letter along with an invoice for Rs. 500/- per module per workbook. The following information should be included in the request letter:

• Firstly, valid name of the candidates
• Secondly, the name of the module
• Thirdly, complete postal address
• Next, contact and demand draft details. 
• Lastly, the demand draft should have the name of the candidate and module name on the reverse side.

4. Start Taking Practice Tests

NCFM Venture Capital And Private Equity Module Mock Test can be beneficial while studying for the exam. This is because NCFM modules are self-learning so it is best to use practice tests for getting perfection in concepts. Moreover, assessing yourself will not only help you improve your answering skills but it will help you to improve your weak areas. Furthermore, this will improve your understanding of the ideas in this subject, allowing for a more thorough review. So, study hard for the exam and get a decent grade. Start Preparing now with free NCFM Venture Capital And Private Equity Module Practice Test!

Start preparing for Venture Capital and Private Equity Module Now!