Foreign VCs await clearance to enter India

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Mumbai: The Indian market has now become a luring bet for the foreign VC firms, who are in the queue seeking clearance from the regulators. Around 66 foreign venture capital investors (FVCI), like Google holdings, GE Capital Mauritus III, Argonaut Capital and Bessemer India Capital II are put on hold to prevent them from investing in the market at a very low price. Infact, some of the firms, like Acacia Redwood Partners, Light House India and Matherhorn Advisory were denied clearance by the regulatory agencies like Reserve Bank of India and so on, as they failed to meet the required criteria. As reported by Financial Chronicle, applications from companies like Greylock (Mauritius), Nexus India I Direct Investment and Jacob Ballas India are not cleared due to non-payment of fees. However, this delay is affecting both ways as it hurts the Indian economy as well as the investors. By holding on the clearance, regulators are interrupting the investments from FVCIs in the market which in turn puts a barrier in the improvement of the rupee, which has slipped to as low as 50.50 per dollar. Moreover, due to the foreign institutional investors (FIIs) withdrawing nearly $13 billion from the stock markets during the year saw a 25 percent fall in the Indian currency. The non-clearance of the applications is taking a toll on the investments firms, thus adding to their unprecedented tough economic times. For instance in Canada the VCs has reportedly raised $120.1 million in 14 deals, which is considered to be the worst in a decade.

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