In a bid to to match its pace with the rapidly evolving startup ecosystem in India, the capital market regulator, Securities and Exchange Board of India (SEBI) is considering to make changes in the rules on alternative investment funds (AIFs).
For this, the market regulator is planning to create a seven member panel committee led by Infosys founder NR Narayana Murthy to create an environment in which enterprises can raise private capital efficiently.
The other members are assumed to be Ajay Piramal, chairman of the Piramal Group and Renuka Ramnath, founder of Multiples Alternate Asset Management. Besides, executives belonging to KKR and Malabar Investments are also likely to be part of the committee.
Prior to this, Murthy has also headed the SEBI committee on corporate governance. Most of his recommendations became mandatory for listed companies.
The move comes at a time when SEBI had already announced its plans to relax norms for the listing of startups in India. If the industry analysts are to be believed then India’s internet businesses are on the way to touch $300 Bn market value by the end of this decade.
The two regulatory officials having direct knowledge of the plans said, “SEBI has planned this move basis the availability of varied investors in India, to fuel India’s entrepreneurial economy.” One of them commented, “We are forming a standing committee on alternative investment funds for recommending measures for funding startups, taxation-related issues, among others.”