"The proposal to set up an expert committee to suggest measures to help attract more PE/VC investments in the Budget is a welcome move. At present, PE/VC investments have to comply with statutory process/compliances governed by the Companies Act, foreign exchange regulations, and applicable SEBI regulations for AIFs. In our view, the Government will look at the committee to provide suggestions to address the long-standing issues raised by the PE/VC industry, since it acknowledges the significant contribution of PE/VC investors in the growth of the start-up and sunrise sectors. In addition, the proposal for the creation of thematic funds by the Government (as Fund of Funds) for providing blended finance in Climate Action, Deep-Tech, Digital Economy, Pharma, and Agri-Tech sectors should see increased investments and M&A in these sectors," says L .Badri Narayanan, Executive Partner, Lakshmikumaran & Sridharan Attorneys.
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