The delegation expects to reach 100 members by the end of 2023, Siddarth Pai, secretary of the Private Equity and Venture Capital CFO Association (PEVCCFOA) told ET.
Members include CFOs from the National Investment and Infrastructure Fund (NIIF), Kotak Investment Advisors, HDFC Capital, ICICI Capital, 3one4 Capital and Blume Ventures.
The association’s founding member and first president is Shweta Agrawal, the former chief operating officer (COO) at SBICAP Ventures. She was also former CFO at Paragon Partners, and has held other senior roles at IDFC Alternatives, Edelweiss Financial Services and Voyager Investment Advisors.
While the association was launched in September, it was formally announced only on Thursday after it concluded a series of meetings with International Financial Services Centres Authority (IFSCA) chairman Injeti Srinivas and Gujarat International Finance Tec-City (GIFT) managing director and chief executive Tapan Ray.
The meetings were to provide feedback to IFSCA on operational issues and suggestions on resolving them, Pai said.
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Issues discussed at the meeting included forming a single integrated platform for approvals related to setting up in IFSCA, forming reporting norms for entities set up in GIFT IFSC, rationalizing special economic zone (SEZ) norms for funds and fund managers, easing the set-up process for Indian fund managers exploring GIFT IFSC, matters related to taxation and Fund Management Entity (FME) regulations and creation of a working group to discuss guidelines and frameworks, he added.
“There is a joke in Indian investing… you need a two-person investment team and a four-person compliance team. That’s how the regulatory regime in India has actually been, and over time, we have seen the regulator make tremendous efforts to make it easier, but simultaneously, when they make it easier on certain aspects, some of the reporting obligations or some of the operational obligations, etc, have actually become very, very onerous,” Pai told ET.
Pai is also founding partner at 3one4 Capital and co-chair of the regulatory affairs committee at Delhi-based Indian Venture and Alternate Capital Association (IVCA).
“These are the operating issues that genuinely contribute to ease of doing business. And because the CFO is the mainstay of that, we decided to actually create an association… Alternative investment funds (AIF) have actually grown about 120% in the past 10 years and is now a Rs 6.94 lakh crore industry. There are lots of regulatory aspects that crop up. It’s important for CFOs to also have a seat at the table,” Pai said.
Apart from IFSCA, PEVCCFOA has so far completed about five rounds of consultations with capital markets regulator Sebi and RBI, and also plans to meet the Department for Promotion of Industry and Internal Trade (DPIIT), Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Corporate Affairs (MCA).