wordpress blog stats
Connect with us

Hi, what are you looking for?

SEBI signals more flexibility for angel and venture funds investing in startups

The Securities and Exchange Board of India (SEBI) proposes to remove certain restrictions and provide regulatory flexibility for venture capital and angel funds investing in startups. As per SEBI's AIF Regulations, venture capital funds are those that invest in "in new products, new services, technology or intellectual property right based activities or a new business model." These Cateogory I AIFs also receive tax benefits and incentives from the government since they "are generally perceived to have positive spillover effects on economy," it said. The board of the markets regulator on Thursday approved to amend regulations for Alternative Investment Funds (AIFs), bringing in five changes to the  regulations, impacting venture capital funds and angel funds in particular: Introduce the definition of 'startups' as specified Government's into the AIF regulations for angel funds Allowed venture funds to invest in sectors that were earlier restricted Provide clarity on scope of responsibilities of managers and members of Investment Committees Prescribe a Code of Conduct to be followed by all AIFs, their management and investment committees. Allow AIFs, including Fund of Funds, to invest in units of other AIFs and directly in securities of investee companies. Last week, the Finance Ministry amended the AIF regulations allowing provident, superannuation, and gratuity funds to invest up to 5% of their corpus in units issued by AIFs, including venture capital funds. This would attract some long-term institutional capital for all AIFs Incentives for angel and venture funds Category I AIFs are infrastructure funds, SME funds, venture capital funds,…

Please subscribe/login to read the full story.
Written By

Reports on banking, payments, fintech and crypto-curencies. Additional reporting on media regulations, data protection and other areas.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

News

The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

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 our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

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