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Objective is to see how to make life easier for people investing in India: M Damodaran

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Objective is to see how to make life easier for people investing in India: M Damodaran

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Speaking to CNBC-TV18 exclusively at the launch of industry body FICCI's Model Risk Code, former SEBI chairperson M Damodaran spoke about ways to scale up PE and VC investments into India, lessons from layoffs in startups and regulatory changes needed for ease of doing business.

The finance ministry had recently set up a committee under former Sebi chairman M Damodaran to look at ways to scale up private equity and venture capital investments in India. This also comes at a time when we are seeing large-scale layoffs across startups in the country.

Speaking exclusively to CNBC-TV18 at the launch of industry body FICCI's Model Risk Code, the former Sebi chairperson spoke about ways to scale up PE and VC investments in India, lessons from layoffs in startups, and regulatory changes needed for ease of doing business.
On the need for parity in taxation, Damodaran said, "We have got inputs from a large number of people, the committee itself has considerable expertise drawn from the resources. We are looking at all of this, our objective is to see how to make life a little easier for people that are actually investing in India. This is certainly one of the asks that the committee has received and is addressing."
On ease of doing business, he said India needs to check whether the context of certain laws and regulations have changed since the laws were introduced.
He said, "Certainly you got to look at all the existing regulations and laws and see whether there are any among them that are past their sell-by date, lost relevance. Because you write laws and regulations in a context, has the context changed? Of course, at the back of all of this, we got to keep in mind the fact that India needs to see a lot of investment coming from outside of India. So how are you going to make it a little easier? That's exactly what we are addressing."
Talking about lessons from layoffs in startups Damodaran said companies need to do scenario analysis, and scenario planning.
He said, "In good times you obviously think these will continue forever. There will be challenges that come in from outside, challenges from outside your company when I say outside within the ecosystem, but outside your company, and you got to see how you address those."
He added that if one doesn't plan for a bad day, and thinks that the sun will shine throughout, clearly then the business model has weaknesses. Every company should have fallback options instead of addressing problems when they show up.
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