Foreign VC can now invest in domestic equities: RBI
Until now, venture capitalists were allowed to invest only in initial public offers or private placements or in units of schemes handled by the Indian venture capital fund.
“It has now been decided to allow FVCIs to invest in the eligible securities (equity, equity linked instruments, debt, debt instruments, debentures of an Indian venture capital undertaking or fund, units of schemes / funds by way of private arrangement / purchase from a third party,” an RBI circular said.
“ FVCIs will also be allowed to invest in securities on a recognised stock exchange subject to the provisions of the relevant Sebi regulations of 2000, as amended from time to time,” RBI said.
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