{"id":20344,"date":"2025-01-20T01:26:22","date_gmt":"2025-01-19T19:56:22","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=20344"},"modified":"2025-04-06T00:42:46","modified_gmt":"2025-04-05T19:12:46","slug":"fund-of-funds-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/fund-of-funds-scheme\/","title":{"rendered":"Fund of Funds Scheme"},"content":{"rendered":"<h2><strong>About Fund of Funds for Startups (FFS) Scheme:<\/strong><\/h2>\n<ul>\n<li>It was approved and <strong>established in 2016<\/strong> with a <strong>corpus of Rs 10,000 crore<\/strong>, with contribution spread over the 14th and 15th Finance Commission cycle based on progress of implementation.<\/li>\n<li><strong>Objective<\/strong>: To provide much-needed boost to the <strong>Indian startup ecosystem<\/strong> and enable <strong>access to domestic capital<\/strong>.<\/li>\n<li>The scheme <strong>does not directly invest in startups<\/strong>; instead, it <strong>provides capital to SEBI-registered Alternative Investment Funds (AIFs<\/strong>), known as <strong>daughter funds<\/strong>, who <strong>in turn invest money in growing Indian startups<\/strong> through equity and equity-linked instruments.\u00a0<\/li>\n<li><strong>Small Industries Development Bank of India (SIDBI)<\/strong> has been given the <strong>mandate of operating this fund <\/strong>through the selection of suitable daughter funds and overseeing the disbursal of committed capital.<\/li>\n<li><strong>AIFs<\/strong> supported under FFS are <strong>required to invest at least 2 times the amount committed under FFS in startups.<\/strong><\/li>\n<\/ul>\n<p><strong>Small Industries Development Bank of India (SIDBI):<\/strong><\/p>\n<ul>\n<li>It was <strong>established under an Act of the Parliament<\/strong> in 1990.<\/li>\n<li>It is the Principal Financial Institution engaged <strong>in promotion, financing &amp; development of <\/strong>the Micro, Small and Medium Enterprises (<strong>MSMEs) sector<\/strong> and coordination of the functions of the various institutions engaged in similar activities.<\/li>\n<li>It <strong>helps MSMEs in acquiring the funds they require to grow <\/strong>the market, develop, and commercialize their technologies and innovative products.\u00a0<\/li>\n<li>SIDBI was made <strong>responsible for administering the Small Industries Development Fund<\/strong> and the <strong>National Equity Fund<\/strong> that were administered by IDBI before.\u00a0<\/li>\n<li>Besides focusing on the development of the MSME sector, SIDBI <strong>also promotes cleaner production and energy efficiency.<\/strong><\/li>\n<\/ul>\n<p><strong>Startup India Mission marks nine years of growth and innovation<\/strong><\/p>\n<hr \/>\n<h3>Q1) What is Startup India Scheme?<\/h3>\n<p>It is an initiative launched by the Indian Government in January 2016 to promote entrepreneurship and startups in India. The scheme is designed to create a favorable environment for startup businesses to grow and thrive in the country.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/ddnews.gov.in\/en\/startup-india-mission-marks-nine-years-of-growth-and-innovation\/\" target=\"_blank\" rel=\"nofollow noopener\">DDN<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fund of Funds Scheme was approved and established in 2016 with a corpus of Rs 10,000 crore,<\/p>\n","protected":false},"author":5,"featured_media":20345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-20344","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=20344"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/20344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/20345"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=20344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=20344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=20344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}