Government is in discussions with insurance and pension fund regulators to facilitate investment by these sectors into venture funding, Minister of State for Finance Jayant Sinha said today.
He added that the government looks to channel long-term capital from insurance companies, trusts and endowments into sectors like venture funding by resolving regulatory and taxation issues.
"We want to enable these pools of long term capital that we have to be able to invest across a set of uncorrelated diversified asset classes.
"We need a pool of domestic limited partners who can also invest, whether it is endowments, trusts or insurance companies. We are working on this from regulatory and tax perspective to create a pool of domestic LPs," Sinha said.
Terming overseas investments, which constitute 95 per cent of the money invested in the country's early-stage companies, as "volatile and fragile", he said there is a greater need to create domestic capital.
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