Home NewsBusiness startups: Not fit and proper: VCs, startups cry foul as restriction on investments from Mauritius, China hurts

startups: Not fit and proper: VCs, startups cry foul as restriction on investments from Mauritius, China hurts

by Marjorie

Synopsis

With the federal government erecting a wall in opposition to China and the RBI intently scrutinising the helpful possession of funds, startups and VCs are feeling the warmth. Even because the trade is ready for the regulatory haze to clear, the largest problem for VCs will probably be profitable again the boldness of buyers who had grown snug with the Mauritius route through the years.

Someday round early September 2020, when a startup was seeking to shut a secondary transaction by which a Hong Kong-based investor was to choose up a ten% stake from current buyers, it needed to search the Centre’s go-ahead. In April 2020, the federal government stated investments from nations that share a land border with India would want its prior approval, in a transfer aimed toward decreasing the Chinese language heft in Indian companies.Quickly after searching for the

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