wordpress blog stats
Connect with us

Hi, what are you looking for?

Foreign VCs can invest in 10 sectors without RBI approval

RBI

Foreign venture capital investors (FVCI) will be allowed to invest in startups 10 sectors including IT related to hardware and software development, nanotechnology, seed research and development without the Reserve Bank of India’s approval, according to a notification.

These investors will be allowed to invest in equity or equity linked instrument or debt instrument issued by an Indian company whose shares are not listed on a recognised stock exchange.

The sectors include:

  • biotechnology
  • IT related to hardware and software development
  • nanotechnology
  • seed research and development
  • research and development of new chemical entities in pharma
  • dairy industry
  • poultry industry
  • production of biofuels
  • hotel and convention centres with a capacity of more than 3,000
  • infrastructure segment

This applies to all FVCIs registered under the Securities and Exchange Board of India (FVCI) Regulations, 2000.

 

There will be no restriction on transfer of any security/instrument held by the FVCI to any person resident in or outside India. An startup receiving investment directly from a registered FVCI will be required to report the investment in form FC-GPR. The RBI mentions that changes are being made to the e-biz portal and separate instructions will be provided on completion, enabling reporting online.

Note that the notification defines a startup as an entity that has been incorporated or registered in India for less than 5 years, with an annual turnover under Rs 25 crore in any preceding financial year and working towards “innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.”

Image source: Nichalp under CC BY-SA 3.0

You May Also Like

News

Paytm has hived off its payment gateway business into a separate entity, Paytm Payments Gateway Service Pvt Ltd, and has infused ₹100 crore worth...

News

The Department for Promotion of Industry and Internal Trade (DPIIT) has forwarded complaints against Amazon and Flipkart, made by traders body Confederation of All...

News

Restaurant aggregator and food delivery company Zomato has raised US$660 million (over ₹4,850 crore), taking its valuation to ₹3.9 billion. CEO Deepinder Goyal tweeted...

News

Info Edge Venture Fund has raised ₹375 crore from MacRitchie Investments, a subsidiary of Temasek Holdings, according to a stock exchange filing. The venture...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ