Ministry matters

The Ministry of Finance sets up a committee to solve the problems faced by venture capital and private equity


The Ministry of Finance sets up a committee to solve the problems faced by venture capital and private equity

The Union Ministry of Finance has set up a high-level committee to address regulatory and other issues to enable increased venture capital and private equity investments in the country.

posted on Sep 14, 2022 | Author ANI



The Union Ministry of Finance has set up a high-level committee to address regulatory and other issues to enable increased venture capital and private equity investments in the country.

Union Finance Minister Nirmala Sitharaman in her 2022-23 budget speech had announced the establishment of a committee of experts to examine and propose appropriate measures related to venture capital and capital investment. “Venture and private equity invested more than Rs 5.5 lakh crore last year, facilitating one of the largest start-up and growth ecosystems.

Increasing this investment requires a comprehensive examination of regulatory and other frictions. A committee of experts will be set up to examine and propose appropriate measures,” Sitharaman said in his speech.

The committee will be led by former SEBI chairman Meleveetil Damodaran. Under him there will be five limbs.

These members are former SEBI Full Time Director G Mahalingam, former CBIC DP member Nagendra Kumar, former Chief Income Tax Commissioner Ashish Verma, DG National Council for Applied Economic Research Poonam Gupta and Director Arun Jaitley National Institute of Financial Management PR Acharya.

The co-director of the Economic Affairs Department of the Union Ministry of Finance will coordinate the work of the committee.

In accordance with the terms of reference mentioned in the order, the committee would study in depth, using a systems approach, the end-to-end frictions and potential accelerators of regulatory policy and taxation to facilitate investment and encourage investments in India. .

It will also review issues and conformities and suggest simplifications and changes to further accelerate the growth of alternative capital to participate in the industry.

The panel is expected to suggest measures to further accelerate investments in startups and the dawn sector and recommend forward-looking measures and future-ready regulatory practices, according to the order. (ANI)