With the new policy for Setting and Managing Venture Capital funds in India announced by RBI, manage in India is set to become a reality.
RBI last week has allowed FDI on automatic route in Venture Capital Funds (VCF) and Private Equity (AIF). With this, the long standing demand of the India VC industry for unshackling has been fulfilled by the Government and augurs well for local fund managers like YourNest. It will ease access of risk capital for startups and unlisted companies and investment by a India managed Fund like YourNest shall be treated as domestic capital, even if significant corpus of the underlying fund is raised overseas.
The Reserve Bank of India (‘RBI’) in order to further boost the entire investment environment and to bring in foreign investments in the country has recently permitted foreign investment (by Persons Resident Outside India including NRIs) in Investment Vehicles [defined to include SEBI registered Alternative Investment Fund (‘AIF’), Real Estate Investment Trust (‘REIT’) and Infrastructure Investment Trust (‘InvIT’)] under Automatic Route.
A link to the press coverage received by the announcement is embedded here.
This week, Washington Post also did a story on Risk-averse India embraces Silicon Valley-style start-ups“. It covered YourNest and MyCity4Kids to showcase how India start-up scene is gaining traction and new age angel investors are getting attracted to this asset class.
Sunil K. Goyal
November 30, 2015