Siddarth Pai, Founding Partner, CFO, 3one4 Capital and Co-Chair, Regulatory Affairs Committee, IVCA
“Indian Alternatives are instrumental in capital formation for the overall growth and development of India. Over a third of the overall capital commitments to Indian AIFs come from foreign investors. The majority of the capital managed by AIFs goes into new asset creation as well. Such investments are held on average for 7-9 years, providing the long term patient capital that India seeks to attract.
The tax on foreign capital which affects capital formation in both the public and private markets. The Indian government's move to equalise LTCG across listed and unlisted securities was instrumental in attracting more capital to Indian startups. The Indian AIF industry has long championed Parity and clarity in Indian taxation - parity in treatment between various securities and listed/unlisted status, and clarity in terms of tax legislation and enforcement. Such parity is essential for the growth of the Indian capital markets and the innovation economy that is served by Indian AIFs.”
P. R. Srinivasan, Founder, Xponentia Capital and Executive Committee Member, IVCA
"Under the PM's Startup India initiative, the country has made significant progress in creating a vibrant private market that provides risk capital to entrepreneurial startups that focus on research, development and innovation. We urge the FM to recognise the higher risks associated with unlisted investments & maintain parity between unlisted and listed investing, as well as foreign and domestic capital. Parity is essential to strengthen both our public markets & private market ecosystem."
