GROWTH OF VENTURE CAPITAL FUNDS IN THE SECURITIES MARKET IN INDIA

AUTHOR – RAHEN SARDAR, STUDENT AT AMITY UNIVERSITY, KOLKATA

BEST CITATION – RAHEN SARDAR, GROWTH OF VENTURE CAPITAL FUNDS IN THE SECURITIES MARKET IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (3) OF 2024, PG. 606-611, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract:

The development and increase in the number of Venture Capital funds in the Indian securities market have contributed much to innovation and entrepreneurship. This research article examines the evolution of VC in India, starting from its inception to the present times, considers the legal framework within which it is constrained to operate, and analyses various factors that have been responsible for its growth. The early 2000s really saw the beginning of a more structured VC landscape in India, spurred on by regulatory support from entities like the Securities and Exchange Board of India. Trends in the very recent past have shown strong growth in VC investments, especially in technology-driven sectors, proving just how vibrant this bourgeoning ecosystem is turning out to be. In this context, the Indian GDP growth, technological advancement, and supportive governmental policies have triggered the VC sector significantly. However, there are a lot of challenges regarding market volatility, regulatory complexities, and stiff competition provided by alternative sources of funding.