The Reserve Bank of India (RBI) has sanctioned various steps to upgrade ease of doing business for start-ups through along with easier entry of foreign capital and by authorizing smoother\u00a0\u00a0transfer of ownership in its sixth bi-monthly monetary policy statement. RBI Governor Raghuram Rajan said that he wants to create a framework in order to allure foreign venture capital (VC) and the central bank wants to clarify the process.<\/p>\n
\u201cWe are supporting the start-up process by making it easier to raise (capital), often from abroad, but also simplify the compliance with regulations, including putting forms online,\u201d Rajan said during the post-policy press conference\u00a0on Tuesday.<\/p>\n
The Ease Of Cross-Border Transactions<\/strong><\/p>\n In order to make the cross-border transactions easier, RBI has proposed (in consultation with the government of India) that in order to transfer the ownership of start-up, the permitting receipt of the consideration amount on deferred basis can be done.\u00a0\u00a0It has also suggested to authorize escrow arrangement or indemnity arrangement up to a period of 18 months.<\/p>\n In addition to this, RBI has also submitted (in consultation with the government) to authorize start-up access to rupee loans under the external commercial borrowings framework with relaxation of efficient lenders.\u00a0\u00a0They are also monitoring at issuing fresh Foreign Direct Investment (FDI) instruments like convertible notes by start-ups.<\/p>\n Harish H V, partner, Grant Thornton India LLP, said these measures are for helping start-ups in their operations and fundraising. \u201cWe look forward to further relaxations around convertible notes as promised. These steps, together with the start-up action plan and more initiatives expected from the ministry of corporate affairs and the Budget, should help the cause of the Stay In India and creating value in India\u2026 Every step counts.\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":" The Reserve Bank of India (RBI) has sanctioned various steps to upgrade ease of doing business for start-ups through along with easier entry of foreign capital and by authorizing smoother\u00a0\u00a0transfer of ownership in its sixth bi-monthly monetary policy statement. RBI Governor Raghuram Rajan said that he wants to create a<\/p>\n","protected":false},"author":22,"featured_media":951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[21],"tags":[57],"class_list":["post-907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-start-up","tag-rbi"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/startup-buzz.com\/wp-content\/uploads\/2016\/02\/RBI.jpg","_links":{"self":[{"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/posts\/907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=907"}],"version-history":[{"count":2,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/posts\/907\/revisions"}],"predecessor-version":[{"id":952,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/posts\/907\/revisions\/952"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=\/wp\/v2\/media\/951"}],"wp:attachment":[{"href":"https:\/\/startup-buzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startup-buzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}