The government today said it will liberalise the exit route norms for domestic venture capital funds (VCFs) by dropping the exit clauses in prevailing guidelines.
Finance minister Yashwant Sinha said the government will abolish the regulations that denied tax exemption to venture capital funds which did not exit from companies in which they invested within 12 months of the firm going public.
Under the existing norms, the tax exemption was allowed to venture capital funds only if they exited from a company by selling out their stakes within 12 months of it going public.