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Consider the following statements regarding the venture capital market in India in 2024:
1. Total venture capital funding in India reached $13.7 billion in 2024 due to the removal of the angel tax and a reduction in long-term capital gains tax rates.
2. The streamlining of the National Company Law Tribunal (NCLT) process and simplification of foreign venture capital investor registrations also contributed to the favorable investment environment.
3. Venture Capital funds in India are regulated by the Reserve Bank of India under the Alternative Investment Fund (AIF) Regulations, 2012.
Which of the statements given above is/are correct?
  • a)
    1 Only
  • b)
    1 and 2 Only
  • c)
    1 and 3 Only
  • d)
    1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding the venture capital market...
1. Statement 1 is correct: The venture capital market in India indeed saw a significant rebound in 2024, with total funding reaching $13.7 billion. This resurgence was attributed to several regulatory reforms, including the removal of the angel tax and a reduction in long-term capital gains tax rates, which created a more conducive investment ecosystem.
2. Statement 2 is correct: The streamlining of the National Company Law Tribunal (NCLT) process and the simplification of foreign venture capital investor registrations also played a significant role in fostering a favorable environment for venture capital investments.
3. Statement 3 is incorrect: Venture Capital funds in India are not regulated by the Reserve Bank of India. Instead, they fall under the purview of the Securities and Exchange Board of India (SEBI), as per the Alternative Investment Fund (AIF) Regulations, 2012.
Thus, the correct answer is Option B: 1 and 2 Only, since both statements 1 and 2 are correct, while statement 3 is incorrect.
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Consider the following statements regarding the venture capital market in India in 2024:1. Total venture capital funding in India reached $13.7 billion in 2024 due to the removal of the angel tax and a reduction in long-term capital gains tax rates.2. The streamlining of the National Company Law Tribunal (NCLT) process and simplification of foreign venture capital investor registrations also contributed to the favorable investment environment.3. Venture Capital funds in India are regulated by the Reserve Bank of India under the Alternative Investment Fund (AIF) Regulations, 2012.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regarding the venture capital market in India in 2024:1. Total venture capital funding in India reached $13.7 billion in 2024 due to the removal of the angel tax and a reduction in long-term capital gains tax rates.2. The streamlining of the National Company Law Tribunal (NCLT) process and simplification of foreign venture capital investor registrations also contributed to the favorable investment environment.3. Venture Capital funds in India are regulated by the Reserve Bank of India under the Alternative Investment Fund (AIF) Regulations, 2012.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regarding the venture capital market in India in 2024:1. Total venture capital funding in India reached $13.7 billion in 2024 due to the removal of the angel tax and a reduction in long-term capital gains tax rates.2. The streamlining of the National Company Law Tribunal (NCLT) process and simplification of foreign venture capital investor registrations also contributed to the favorable investment environment.3. Venture Capital funds in India are regulated by the Reserve Bank of India under the Alternative Investment Fund (AIF) Regulations, 2012.Which of the statements given above is/are correct?a)1 Onlyb)1 and 2 Onlyc)1 and 3 Onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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