Alternate Investment Funds will now have to invest at least twice the amount they receive from a SIDBI-operated Rs 10,000 crore fund in start-ups, giving a boost to entrepreneurs. The decision was taken at a meeting of the Union Cabinet chaired by PM Narendra Modi.
NEW DELHI:
Last year, the government had approved the proposal to establish a Fund of Funds for Start-ups (FFS) with a total corpus of Rs 10,000 crore. “Alternate investment funds supported by FFS shall invest at least twice the amount of contribution received from FFS in start-ups...,” an official statement said. It was also decided that operating expenses for carrying out due diligence, legal and technical appraisal, would be met out of the FFS to the extent of 0.5 per cent of the commitments made to AIFs and outstanding.
