Private Equity & Venture Capital

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.

Services Offered:

Since this industry demands special expertise, the KSK team of experienced professionals provide services like

  1. Advisory role in structuring, strategizing and management
  2. Cross-border transactions
  3. Due Diligence
  4. Dispute resolution
  5. Data protection
  6. Drafting and vetting agreements and other documents
  7. Project Financing
  8. Taxation

FAQs

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.

  • The Companies Act, 2013 provides provisions concerning the shares and securities and the regulation of board and shareholders
  • The Income Tax Act, 1961 governs taxation concerns such as avoidance of double taxation
  • The Foreign Exchange Management Act, 1999 (FEMA) enables the Reserve Bank of India (RBI) to conduct the monitoring and regulatory tasks pertaining to foreign investments.
  • Department for Promotion of Industry and Internal Trade (DPIIT) of the government of India’s consolidated Foreign Direct Investment (FDI) Policy
  • SEBI regulations have been discussed extensively below

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-

  • Registration requirements,
  • Conditions and restrictions on investment,
  • General responsibilities and obligations of the parties,
  • Investigation processes and
  • Fees are applicable wherever required.

SEBI in its reports has indicated the need for improved taxation methodology and resource mobilization.

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HOW CAN WE HELP?

The Firm has a team of lawyers who hold expertise in private equity and venture capital and is in position to provide you with unrivalled expertise on your private quity and venture capital assistance needs.

LITIGATION

The Litigation Team of the firm predominantly involves catering to the needs of Indian and Multinational clients

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REGULATORY

We regularly represent corporate and individual clients before state and central administrative agencies

King Stubb & Kasiva

Offices In - New Delhi | Bangalore | Mumbai
Chennai | Hyderabad | Kochi | Kolkata | Pune