India's top banks including State Bank of India, HDFC Bank and Axis Bank have walked back on capital commitments made to private equity and venture capital funds to avoid falling foul of a recent central bank circular on alternative investment funds (AIFs), three people familiar with the matter said. The development has rattled around 100 funds, the people said, putting a question mark over AIFs operating in a range of sectors including startup funding and buyout finance.
In December, the Reserve Bank of India (RBI) asked banks and non-bank lenders to sell investments in AIFs linked to their debtor companies. PE and VC funds raise significant amounts from domestic banks through AIFs, which they invest in companies across sectors. Once a fund manager finalizes an investment, a capital call is made - a request to draw down the promised money.
This story is from the February 27, 2024 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 27, 2024 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Think Tesla Is In Trouble? Pity Even More Its Wannabe EV Rivals
The combined market value of six prominent wannabes hit 400bn in 2021, but today they are worth 65bn
Has The Growth Of Our Economy Translated Into Domestic Jobs?
While the covid shock and other setbacks got in the way, data indicates that employment in India is on a firm recovery path
How not to blow a major chunk of your travel budget on visas
Rejection of visas can impact your travel costs, especially when you have to cancel flight and hotel bookings
Ghosh won't stay on Bandhan Bank board
Board may even look at appointing an interim CEO post his tenure
Aakash names Deepak Mehrotra as managing director and CEO
Aakash Educational Services Ltd (AESL), a subA sidiary of embattled startup Byju's, has appointed Deepak Mehrotra as its managing director and chief executive officer.
Market cap of BSE-listed companies hits ₹400 trillion milestone
The Indian stock market's valuation crossed ₹400 trillion in a historic milestone on Monday, with the last ₹100 trillion rolling in the shortest duration of a mere 9 months, as the country's bright macroeconomic fundamentals encouraged local and foreign investors to plough more money into equities.
New Wipro CEO must cover a lot of ground
The sudden resignation of Thierry Delaporte as Wipro Ltd's chief executive officer is the last thing investors in the company want to deal with.
Synchron readies large-scale brain implant trial
Synchron Inc, a rival to Elon Musk's Neuralink brain implant startup, is preparing to recruit patients for a large-scale clinical trial required to seek commercial approval for its device, the company's chief executive told Reuters.
Alibaba slashes cloud prices globally as AI demand quickens
Alibaba Group Holding Ltd. is cutting prices for cloud customers from the US to Singapore by as much as 59%, mirroring deep discounts at home as the once high-flying division struggles to fend off rivals and revive growth.
Piramal Alternatives invests ₹110 cr in Biodeal Pharma
As contract manufacturing becomes the new A growth driver of the pharmaceutical industry, Piramal Alternatives, the fund management business of the Piramal Group, on Monday announced an investment of ₹110 crore in Biodeal Pharmaceuticals Ltd, a contract development and manufacturing organization.
