News & Media 25th Jul 2024
The Budget announcement on VCCs would create sources of capital beyond private equity and venture capital ecosystem It will give another avenue for early-stage companies and founders to raise funds in a constrained environment.
Union finance minister Nirmala Sitaraman, while presenting the Budget for 2024-25 on Tuesday, announced the formation of variable capital companies or VCCs in India. This move will boost capital flow from global and domestic investors in the alternative investments space in Gift IFSC. The government will enable pooled private equity fund structures through VCCs, a system popular in tax-friendly jurisdictions such as Singapore and Mauritius.
Priyamvada C & Mansi Verm article in Livemint, “How variable capital cos will boost fund flow in Gift IFSC” addresses this concern with detailed comments from our Partner Vinod Joseph.