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

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

Synopsis

With the federal government erecting a wall towards China and the RBI intently scrutinising the useful possession of funds, startups and VCs are feeling the warmth. Even because the business is ready for the regulatory haze to clear, the largest problem for VCs will likely be successful again the boldness of buyers who had grown comfy with the Mauritius route over time.

Someday round early September 2020, when a startup was trying to shut a secondary transaction during which a Hong Kong-based investor was to choose up a 10% stake from present 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 looking for the

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