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    DPIIT asks regulators like RBI, SEBI, others to set up startup cells within institutions

    DPIIT asks regulators like RBI, SEBI, others to set up startup cells within institutions

    DPIIT asks regulators like RBI, SEBI, others to set up startup cells within institutions
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    By Mugdha Variyar   IST (Updated)

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    The Department for Promotion of Industry and Internal Trade (DPIIT) has written to regulators asking them to set up 'startup cells' within their institutions to engage with new ventures and resolve regulatory and compliance issues.

    The Department for Promotion of Industry and Internal Trade (DPIIT) has written to regulators asking them to set up 'startup cells' within their institutions to engage with new ventures and resolve regulatory and compliance issues.
    The department, which falls under the aegis of commerce and industry ministry, has written to the RBI, SEBI, as well as, tax bodies such as the CBDT and CBIC regarding this.
    According to the sources, the department has sent out letters to these regulators over the past few weeks.
    DPIIT secretary Guruprasad Mohapatra confirmed to CNBC TV 18 that the department has advised regulators to set up teams dedicated to constant engagement with startups.
    "There are a lot of regulatory issues vis-a-vis these regulatory bodies. They have done a lot of good work for startups. But as part of an ongoing effort, we have asked them to set up dedicated teams that look into startups’ issues on a constant engagement basis," Mohapatra said.
    This idea, the DPIIT secretary said, was discussed at the Global Venture Capital Summit held in Goa in December, in which officials from the department as well as other government bodies participated.
    Last year, Central Board of Direct Taxes (CBDT) had set up a special five-member cell to resolve taxation issues that startups face, especially around angel tax, after the announcement by Finance Minister Nirmala SIthraman in her Budget speech.
    "The cell will work towards redressal of grievances and mitigate tax-related issues in case of startup entities with respect to administration of Income-tax Act, 1961," CBDT had said in its notification in August last year.
    In January, the central government also notified the structure of the National Startup Advisory Council, which will include members from the startup industry, as well as government officials, to be headed by the commerce minister.
    The government in its notification said the council will suggest measures on issues such as protection and commercialisation of intellectual property rights, easier setting up and exit from businesses by reducing regulatory compliances and costs, keeping control of startups with original promoters and providing access to global markets for Indian startups, among other issues.
    The council, Mohapatra said, is in the process of being finalised.
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