Rajan Eases India Startup Rules With Exit Option for Foreigners
- Venture capital firms will find it easier to sell investments
- RBI eases rules governing compliance reporting and remittances
Raghuram Rajan, governor of the Reserve Bank of India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s central bank unveiled rules that may lure more overseas investors into the nation’s booming startups.
The Reserve Bank of India allowed overseas investors to sell their stakes in Indian startups to local companies, potentially giving foreign venture capital funds an easier exit route. The regulator also allowed startups to file reports over the Internet, and eased rules governing share transfer transactions, according to a statement posted on RBI’s website.