IVCA Welcomes Consultative Approach on Draft FEMA NDI Rules
Mumbai, Maharashtra – In a press release dated 26 August 2026, the Indian Venture and Alternate Capital Association (IVCA) expressed appreciation for the recent stakeholder consultation on the draft Foreign Exchange Management (Non‑Debt Instruments) Rules. The consultation was jointly organised by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Department for Promotion of Industry and Internal Trade (DPIIT) and the Department of Economic Affairs (DEA), bringing together policymakers, regulators and industry participants.
IVCA members actively participated in the discussions, using the forum to convey concerns, suggestions and implementation‑related inputs directly to the authorities. The industry welcomed the proposed measures that aim to further liberalise foreign investment, specifically for stakes below 10 percent, and the possibility of allowing market forces to determine valuation of such investments.
At the same time, IVCA stressed the importance of retaining the existing treatment of Alternative Investment Funds (AIFs) under the IOCC framework, urging that transactions and funds already undertaken under current regulations be grandfathered and that any new provisions be applied only prospectively.
Quote from leadership
Srini Sriniwasan, Chairperson of IVCA, said, “We deeply appreciate the joint forum of RBI, SEBI, DPIIT and DEA on this important reform and liberalisation measure. Bringing policymakers, regulators and industry together provides an important opportunity to discuss the practical implications of the proposed framework and ensure that industry perspectives are considered as the regulations evolve. Such a consultative approach will be important in creating greater predictability, improving ease of doing business and strengthening India’s attractiveness for global capital.”
IVCA highlighted that the consultative approach enables early discussion of practical implementation issues and offers the industry a chance to contribute its experience toward an efficient, investment‑friendly regulatory framework. The association looks forward to continuing to provide relevant inputs as the framework evolves and to supporting efforts toward a simpler and more predictable foreign investment regime.
About IVCA
The Indian Venture and Alternate Capital Association (IVCA) is a not‑for‑profit apex industry body that promotes the alternate capital industry and fosters a vibrant investing ecosystem in India. IVCA represents more than 500 funds with a combined assets‑under‑management of over USD 350 billion. Its membership includes domestic and global venture capital firms, private equity funds, infrastructure and real‑estate funds, credit funds, limited partners, investment companies, family offices, corporate VCs and knowledge partners, which invest across emerging companies, venture growth, buyouts, special situations, distressed assets and credit and venture debt.
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