IAMAI Forms Committee To Address Issues Faced By VC Firms
The committee will play an essential role in highlighting sector-specific challenges faced by portfolio companies of VC firms
The Internet and Mobile Association of India, on Tuesday, has formed a venture capital (VC) committee to address the issues faced by VC firms and their portfolio companies. As per reports, Vikas Agnihotri, operating partner, SoftBank investment advisers, will chair the committee and Shweta Rajpal Kohli, chief public policy officer, Sequoia India and Southeast Asia, will be the co-chair. Multiples Alternate Asset Management, Indian Angel Network, 3one4 Capital, Eximius and other domestic and international ventures funds are also there in the committee.
According to a statement by IAMAI, "The committee will work for direct foreign listing of Indian startups, clarification on gift tax, taxation on ESOPs, angel fund structure, GIFT City regulations and so on. It will also play an essential role in highlighting sector-specific challenges faced by portfolio companies of VC firms."
The committee aims to achieve the increasing support from VC firms to India startups, makes it imperative to highlight the issues faced by these firms at appropriate forums. Stating the same, Shweta Rajpal Kohli said in a news report quoted as saying, "The formation of this committee is a crucial step towards furthering the government's vision of turning India into an attractive investment destination for VC firms and building a world-class startup ecosystem. We are looking forward to work with stakeholders for making good corporate governance as a key priority for the sector."
Agreeing to the same viewpoint, Vikas Agnihotri also said in the statement, "We will work with all stakeholders in building a robust and transparent framework for investors who are betting on India's accelerating digital GDP. VC and PE firms are backing the high-velocity companies in job creation and revving up the overall market buoyancy."
As per available reports, finance minister Nirmala Sitharaman said in her budget speech that the government will form a panel to encourage VC and PE investments and she also promised that the panel will examine appropriate measures to scale up investments, boosting up more policies that could encourage investors to pour more foreign capital to Indian companies.
According to the national investment promotion and facilitation agency, India is currently a home to 69000 startups with a massive fund flow into the startup ecosystem and has minted over 100 unicorns.
IAMAI is a non-profit industry body registered under the Societies Registration Act, 1860, It is established to expand and enhance the online and mobile value-added services sectors. It is dedicated to present a unified voice of the business that represents government, investors, consumers and other stakeholders.