Here, a start-up will mean an entity (private limited company or a registered partnership firm or a limited liability partnership) incorporated or registered in India not prior to five years, with an annual turnover not exceeding Rs 25 crore in any preceding financial year.
RBI said that these amendments have been made to further liberalise and rationalise the investment regime for FVCIs and to give a fillip to foreign investment in the start-ups.
Further, any FVCI can also invest in equity or equity linked instrument or debt instrument issued by an Indian company whose shares are not listed on a recognised stock exchange at the time of the issue.
These companies can be engaged in sectors like biotechnology, IT related to hardware and software development, poultry industry, seed research and development among others.