Fiddich Review Centre
Alternative Investment

PEVCCFOA: CFO body formed for smoother compliance of PE-VC funds

Twenty-five chief financial officers of private equity and venture capital firms have formed an association to bat for compliance efficiency of funds by organizing centralized and highly specialized liaising with regulators.

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.

Discover the stories of your interest

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).

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

Source link

Related posts

ESMA Issues Consultation Paper on Fund Names to Tackle Greenwashing | Latham & Watkins LLP


Colliers completes investment in leading alternative investment manager


Ripple (XRP) and Polkadot (DOT) Investors Mull Buying Into Flasko (FLSK) 2022 Presale


Leave a Comment