The Modi government is trying to ease regulations to allow pension and insurance funds to flow to startups
Bengaluru: As per a report in Economic Times, the Modi government is trying to ease regulations to allow pension and insurance funds to flow to startups.
The idea behind it is to allow stable and long-term capital. The domestic companies depend heavily on foreign risk capital.
“The government is seized of the fact that startups need a vast amount of capital to grow. The government is examining ways to allow pension and insurance funds to deposit a small portion of their profits in these startups,” The Economic Times quoted a top official as saying.
As regards foreign funding, Union minister Piyush Goyal said, “I suggested that they (industry) create a professionally managed Rs 10,000 crore domestic fund, which can identify opportunities that come out of the startup system at an early stage”.
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Last Updated Jan 29, 2021, 6:47 PM IST