Reserve Bank of India (RBI) governor Raghuram Rajan said that the central bank will be creating a framework "receiving foreign venture capital, differing contractual structures embedded in investment instruments, deferring receipt of considerations for transfer of ownership, facilities for escrow arrangements and simplification of documentation and reporting procedures." The RBI said that it would be take steps for the conducive growth of startups in India in line with Prime Minister Narendra Modi's Start-up initiative during the latest bi-monthly monetary policy statement. Rajan added that a detailed statement will be issued separately on these measures. Readers will also remember that in December, the RBI set up a dedicated helpline for startups to offer guidance and assistance for undertaking cross-border transactions within the ambit of the regulatory framework. “While seeking guidance, the enterprises should provide complete information to the Reserve Bank and mention the specific issues on which they need guidance from the Reserve Bank in relation to the Foreign Exchange Management regulations. This would enable the personnel attending the helpline to offer timely and effective information,” the RBI said in a notification. Startup India, Standup India event Earlier this month, Modi announced a slew of measures and incentives for startups which included faster exits for startups through the bankruptcy bill, a startup fund of Rs 10,000 crore and tax exemptions. Modi added that startups setup after April 2016 will be exempt from income tax for a period of three years. Exemption from capital gains tax for individuals will be extended to all startups from the…
