Yesterday, the Alternative Investment Policy Advisory Committee appointed by SEBI under the chairmanship of Mr. Narayana Murtyh issued its first report. The Committee has suggested a number of reforms on different fronts, including creating a favourable tax environment for investors, unlocking domestic sources of venture capital and private equity, enabling and encouraging onshore fund management in India, and reforming the alternative investment fund (AIF) regulatory regime to facilitate and optimize investments by AIFs. The Committee has also suggested specific legislative changes to achieve the above. The thrust of the Committee’s recommendations are to enable a broader environment in India for entrepreneurship and start-ups and especially the methods to meet their financing needs, but at the same time keeping the broader stakeholder and revenue interests in mind.
SEBI has invited comments on the report, the window for which is open until February 10, 2016.