The Next Big Leap

20 | The Next Big Leap [ OVERVIEW OF START-UP ECOSYSTEM IN INDIA ] Fund of Funds for Start-ups (FFS): The FFS scheme was approved and established in June 2016 with a corpus of ` 10,000 crores to provide capital to SEBI-registered Alternative Investment Funds (AIFs) that invest in Indian start- ups through equity and equity-linked instruments. As on November 30, 2022, in the FFS, ` 7,527.95 crores have been approved for the AIFs. Start-up India Seed Fund Scheme (SISFS) : The scheme has been approved for a period of 4 years, starting from 2021-22 to provide nancial assistance to start -ups for proof of concept , prototype development, product trials, market entry, and commercialization. Under SISFS, of the corpus of ` 945 crores, ` 455.25 crore have been approved for 126 incubators as on November 30, 2022. Credit Guarantee Scheme for Start- ups (CGSS): The scheme was launched to provide credit guarantees to loans extended to start-ups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs), and Venture Debt Funds (VDFs) under SEBI registered AIFs. Regu l a tor y Re forms : Over 50 regulatory reforms have been initiated since 2016 to enhance ease of doing business, ease of raising capital, and reduce compliance burden for the start-up ecosystem. Also, a framework for tech l istings by SEBI and the launch of Open Network for Digital Commerce in 2022 will benefit start- ups. Angel Funds under the IFSCA (Fund Management) Regulation 2022: The IFSCA issued a framework for angel funds on July 1, 2022. This provides a regulatory framework for various activities related to fundmanagement, including schemes for investing in early-stage start-ups. Initiatives under the Union Budget 2023-24: The government announced various initiatives to support the growth of Agri-startups, like Digital Public Infrastructure for Agriculture and the Agriculture Accelerator Fund. It also announced the National Data Governance Pol icy to promote innovation and research by start-ups. Extendedthedateof incorporation for income tax benefits to start- ups to 31March 2024. Under this, start-ups incorporated before 31 March 2024, can apply for income tax exemption for a period of 3 consecutive years out of the 10 years since incorporation. Provided benefit of carrying forward losses on changes in shareholding of start-ups from 7 years of incorporation to 10 years. Dun & Bradstreet