Foreign venture capital investment : the Indian experience

Venture capital investment has become one of the most rapidly growing investment modes in India. The contributing factors to this growth are the recent economic and legal changes. The Indian government has provided operational and functional autonomy to institutions while at the same time closely monitoring them. Though there are several rules and regulations that lay down various procedures for the investment, the law is still investment-friendly and offers various benefits. Some tax reforms have also been introduced that are both sound and practical for both foreign and domestic investors. This paper introduces the reader to not only the positive aspect of the system but also to the weaknesses it still has to overcome. This paper also suggests that a venture capital investment manual for domestic and foreign venture capitalists may make the investment market grow faster and make the investment decisions easier.School of Accounting and Financ