The cabinet committee on economic affairs (CCEA) gave its approval for overseas investments in Class B units of Dream II scheme of the Mumbai-based venture capital fund.

Foreign investors can make investments through one or more special purpose companies or their subsidiaries in the Dream II scheme, an official release issued after the CCEA meeting said.

The approval would be subject to compliance of venture capital regulations, Press Note 9 of 99 series for downstream investment and Press Note 2 of 2005 series for construction development activities, it said.

Dream II scheme proposes to issue four classes of units. While Class A units will be issued to only domestic investors Class B units will be offered to offshore investors.

The CCEA meeting also cleared a proposal of the GVK Power and Infrastructure Ltd (GVKPIL) to issue over 78 lakh shares aggregating to a total of $500 million to NRI shareholders of its sister concern GVK Industries Ltd (GVKIL).

GVKPIL will issue and allot 78,58,388 equity shares of Rs10 each to non-resident shareholders of GVKIL amounting to up to 7.63 per cent of the post issue paid-up equity share capital of GVKPIL, the CCEA release said.

This would be in consideration for transfer of NRI shareholders respective shares in GVKIL to GVKPIL in the ratio of 40:3, under which NRI shareholders would be given three shares of GVKPIL for every 40 shares they hold in GVKIL.