The past few years have been quite progressive for the Indian Private equity deal activities, wherein the volume of investments has grown to about $70 Billion, spread over many industries, including the IT industry, Healthcare industry, Education industry, automotive industry, and more, giving rise to many opportunities with an increasing view of ESG criteria to help achieve the Net zero goal. Besides investment, there has been a growth of fund exits as well. PE/VC has emerged as a new alternative asset class in India with a focus on foreign private capital. The manufacturing sector of India is making strides and is projected to grow tremendously in the coming decade.
Since this industry demands special expertise, the KSK team of experienced professionals provide services like
While private equity is a broader term for capital invested in a company or an entity, Venture capital is a sub-category of the same. Private equity opts for larger fund size for stable companies, Venture capital is often provided to smaller companies in their start-up phase.
Alternative investment funds (AIFs) are regulated by the principal regulatory body, the Security and Exchange Board of India (SEBI). It’s empowered by the SEBI Act 1992 to regulate the AIFs through inspections of data such as accounts, books, and documents containing relevant information to the parties involved in PE/VC transactions.
It’s advisable to register venture capital funds under SEBI since SEBI regulations permit investment through VC in equity or equity-related instruments of unlisted companies. It extends to financially weak and sick industries whose shares are listed or unlisted.
The SEBI Venture Capital Funds regulations, 1996 provide-
SEBI in its reports has indicated the need for improved taxation methodology and resource mobilization.