Mumbai: In a move to help the fledgling breed of Indian entrepreneurs, RBI said it plans to smoothen flow of funds to start-ups by allowing them to get foreign venture capital without any curbs and enable easier transfer of shares between residents or non-resident investors.
RBI Governor Raghuram Rajan said the aim is to simplify movement of capital and do away with regulatory impediments hampering their growth, to create more ‘unicorns’ or companies with billion-dollar valuations.
The Governor cited difficulties entrepreneurs face in case of a sell-off of the business, and the need to stretch the validity of the time for which the amount is held in an escrow account, and mooted for it to be stretched to 18 months.
