By IE&M Research
The RBI has allowed Foreign Venture Capital Investors (FVCIs) registered with the SEBI to invest in private companies in several sectors without any prior permission. Such FVCIs can invest in equity or equity-linked instrument or debt instrument issued by private companies in sectors such as infrastructure, biotechnology, nanotechnology, information technology, seed research, dairy and poultry industry and biofuel production. The RBI also allowed FVCIs to invest in startups without its prior permission. The FVCIs have also been allowed to open a foreign currency account or a rupee account to make transactions. The RBI defines a ‘startup’ as any private limited company, partnership or a limited liability partnership, registered in India less than five years ago, with a turnover of less than Rs 25 crore. Such entities should be working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.
