SEBI proposes to accord MF status to venture funds

This proposal, to be a part of new guidelines being worked out, has been sent to the Union Finance Ministry recently.

Aug 21, 2014 11:08 IST India Infoline News Service

The Securities and Exchange Board of India has proposed to accord venture capital funds the status of a ‘specialized mutual fund’, according to a media report.
This proposal has been sent to the Union Finance Ministry recently. The objective is to provide venture capital funds tax exemption under Section 10 (23) D of the Income-Tax Act, the report added.
Venture capital investors are liable to a 30 per cent capital gains tax. At present, the investors to whom it pays out are also taxed. 

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