Accepting the recommendations, the government said that since it is permissible under the SEBI regulations, it will extend the benefits to OBCs as well.
The Centre is going to unveil a venture capital fund scheme for other backward classes (OBCs), with women making up 30 per cent of the beneficiaries. The move comes after recommendations by the Group of Secretaries on Education and Social Development, which suggested that venture funds be made available to backward classes, scheduled tribes and minorities. Currently, the Union Ministry of Social Justice and Empowerment has a venture fund scheme for scheduled castes (SCs).
Accepting the recommendations, the government said that since it is permissible under the SEBI regulations, it will extend the benefits to OBCs as well.
The fund will be implemented by fiduciary firm Vistra ITCL, formerly the IL&FS Trust Company Ltd. The fund, for which the Centre will set aside Rs 200 crore initially with yearly supplementation, will be registered under SEBI's Alternative Investment Funds Regulations 2012, with the government of India as the anchor investor and IFCI Ltd as the sponsor investor.
Apart from women, entrepreneurs in the field of manufacturing and service sectors who ensure asset creation out of the funds will be given preference. Companies that have 51 per cent stake holdings by OBC entrepreneurs in the preceding six months with the management will also be given preference.
The government, however, noted that there is a huge demand for the venture fund from OBC entrepreneurs, even though there's no such data with the government. "Although, there is no reliable data on the profile of OBC entrepreneurs, it is estimated that there is a huge demand for providing concessional finance to such companies which can strengthen the businesses of such entrepreneurs," read a government internal communication accessed by DNA.
Entrepreneurs Too
Apart from women, entrepreneurs from the fields of manufacturing and services will also be given preference.
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