Investor lobby IVCA seeks easier norms on the lines of Obama's JOBS Act to attract more investors

On the lines of the JOBS (Jumpstart Our Business Startups) Act, passed by former US President Barack Obama in 2012 which made fundraising from private sources much easier for startups, the Indian Private Equity and Venture Capital Association or IVCA has made a representation to the government to allow a broader set of investors to invest in riskier asset classes including new and unlisted businesses and government certified startups.
The proposed solution, on the lines of the JOBS Act, has called for investor accreditation termed as 'digitally-accredited qualified investor' or DAQI which will represent an 'investor Aadhaar" for qualifying investors.
So wherever a DAQI participates in an investment, the minimum and maximum quantum amounts for investment would not be fixed by regulators.
Also, a qualified investor will be entitled to make investments in a variety of asset classes including new and private businesses or startups to gain exemption from Angel Tax, AIFs(alternative investment funds), startup exchanges, angel funds approved by Sebi, peer-to-peer lending platforms and crowdfunding platforms, or HNI investments in derivatives.
"We need to diversify and create a much wider pool of people who are willing to participate in riskier asset classes to create jobs and boost innovation," said Gopal Srinivasan, managing director at private equity firm TVS Capital and the chairman IVCA. The industry body has suggested criteria such as knowledge of these asset classes as well a minimum income threshold among others to qualify investors.

Trending News

Why Amazon’s Flipkart bid is just not high enough

Selling without MRP, expiry dates to cost etailers

TCS hits $100Bn market cap: A new phase for India Inc?

Snapdeal posts Rs 4,647 crore net loss in 2016-17

Flipkart-Walmart deal: What it means for the etailer and the whole industry

NCLAT stays CCI penalty of Rs 136cr on Google in search bias case

Walmart may rope in Google parent Alphabet for the Flipkart deal

Internet shutdown cost Indian economy $3 billion from 2012-17: Study

Flipkart and Amazon plan mega summer sales in May

International sales now account for 48% of Twitter's revenues

70% of mobile phones buyers in India opt for non-cash payments

Amazon India expects groceries & household products to account for 50% of business in 5 yrs

India to come out with a E-commerce policy framework in 6 months

Online learning platform Career Anna raises Rs 3 Cr funding

Wal-Mart will offer to buy up to 86% of Flipkart

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities