Attractive idea! Pension funds may be allowed to invest in startups - Check Modi government plan
It may soon become a reality that small parts of pension and insurance funds could be allowed to invest in startups in India.
It may soon become a reality that small parts of pension and insurance funds could be allowed to invest in startups in India. According to the latest development, Modi government will start inter-ministerial discussions to explore if small parts of pension and insurance funds could be allowed to invest in startups in India, Guru Prasad Mohapatra, secretary, Department for Promotion of Industry and Internal Trade (DPIIT) said.
'Idea looks like a very attractive opportunity'
"This issue has been raised by the industry before the Minister and at the Venture Capital meet in Goa. At a conceptual level, the idea looks like a very attractive opportunity because it brings a lot of funds since pension funds and insurance funds are huge in India. Industry has presented to the government that if foreign pension funds can invest in Indian startups why not Indian pension funds", the secretary told IANS.
Cyclone Michaung update: IMD forecast offers some respite for Chennai with predictions of light rainfall
Share Market Today LIVE: MARKET AT ALL-TIME HIGH | Nifty scales fresh peak of 20,813.1; Sensex at 69,306.97; Nifty Bank at 46,933.15
Brigade Enterprises rises for sixth day in a row, longest winning streak in seven weeks; here is what is driving the realty stock
HCL Tech, Patanjali Foods, Garden Reach Shipbuilders, Gabriel India: Stocks to watch out for on Tuesday
He adds, "The foreign pensions funds don't attract enough interest rates in their respective countries as they get in India. But the pension funds are a sensitive issue as it is the lifetime savings of working class, there is a lot of conservatism there, so they invest in government bonds with assured returns.
"Now the minister has assured the startup industry that there will be discussions with the pension funds, regulatory authorities and we will start inter-ministerial discussions", Mohapatra said.
Recently, the Central Drug Controller -- DGCI asked all drug regulators in states and UTs to enforce ban on online sales of medicines. Currently online pharmacies are operating in the country without a drug licence as there are no laws in the online pharmacy. Since there are many startups in the medicine sales through online platforms, such companies brought this to the DIPPT notice seeking quick clarity on this as it is affecting their business.
"Health ministry is working on it. The startups want the early issue of relevant notification. We will tell the ministry to make their stand clear on this as medicines are a sensitive issue," he added.