Economy

Ministry of Corporate Affairs to review investor premium in startups, says report

Updated : November 20, 2018 10:04 AM IST

The MCA has issued notices to 2,000 startups that have raised money since 2013, said the report.

The ministry is questioning the valuations at which these startups raised funds: report

After the Income Tax department, the Ministry of Corporate Affairs (MCA) has become the latest government entity to ask investors about the premium they have paid in startups, a report by The Economic Times said.

The MCA has issued notices to 2,000 startups that have raised money since 2013, said the report.

The ministry is questioning the valuations at which these startups raised funds and focusing on those firms whose valuations have fallen after the initial round of fundraising, the report said citing people with knowledge of the notice and MCA's thinking on the issue.

The IT department had also raised similar concerns two years back and had asked startup companies to pay about 33 percent in tax if their valuations fell after the first round of fundraising, the report said.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more

Ministry of Corporate Affairs to review investor premium in startups, says report

You May Also Like

Ather Energy launches 450X scooter at Rs 99,000; monthly subscription options of Rs 1,699, Rs 1,999 available

Maruti Suzuki reports Q3 net profit at Rs 1,565 crore; misses estimates

India's crude steel output rises 1.8% to 111.2 MT in 2019

Trending on CNBC-TV18

recommended for you