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Proposal on investment in foreign companies, VCs irks HNIs – Economic Times

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Wealthy Indians will find it virtually impossible to bet on foreign startups, firms, overseas venture capital funds and similar offshore unlisted entities once a new rule proposed by the Reserve Bank of India (RBI) comes into force.

Since more than a decade, local high net worth individuals (HNIs) and ultra-HNIs have been buying properties, securities — listed as well as unlisted — and units of global funds by transferring funds under the central bank’s liberalised remittance scheme (LRS) which allows a person to invest a maximum of $250,000 a year.

While the compliance and paperwork for investments in unlisted entities were tightened a few years ago, requiring individual investors to fulfil formalities under ‘overseas direct investment’ (ODI) — the doors were never really shut.

‘Regressive Changes’

However, the proposed regulations on purchase of foreign unlisted securities lay down certain conditions that effectively rule out such investments. Some of the overseas funds and multiple advisors on cross-border investments on behalf of their HNI clients have requested the central bank to hold back the proposed changes, three persons told ET.

According to the draft regulations, any investment in an unlisted company, even for a stake as little as 1-2%, is allowed (as ODI) only if the Indian investor has control over the foreign outfit — a right that very few, if any, investors will have.

Besides, the investee company cannot in turn put money in a subsidiary or float a step-down subsidiary, something a minority investor can never assure. The investee company which issues the unlisted securities cannot be in financial services — thereby, restricting investments with a foreign private equity or VC fund.

“Under the current LRS rules, resident investors are permitted to invest in global funds set up abroad within the permissible limits. These changes if implemented would not only result in inability of individuals to participate in global deals on a portfolio basis, but could also result in resident Indians being regarded as defaulting investors in terms of the fund documents since they may no longer be able to fulfil their existing commitments,” said Parul Jain of the law firm Nishith Desai Associates.

Annual remittance limit

“There has been a long ask to increase annual remittance limit from $250,000 to $1 million. Rather than proposing an increase in remittance limits, with draft rules, resident angel investment into startups and other unlisted companies set up abroad would no longer be permitted. Such a proposed change seems regressive in nature compared to the current RBI policy, and will have an adverse impact on the ability of Indian investors to become global investors,” she said.

An RBI spokesperson did not respond to ET’s query on the regulatory rationale behind the proposal — whether there were concerns related to money laundering or round-tripping.

“Restricting a resident to invest in unlisted companies without control will deprive the opportunity to invest in many offshore growth-oriented companies. Even though in certain cases, investments may have been made with mala fide intention, closing the door for all is not justified,” said senior chartered accountant Dilip Lakhani.

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Sudbury med-tech firm lands $8M in investment funds – Northern Ontario Business

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Rna Diagnostics has received investment capital that will enable it to complete a clinical trial on its cancer diagnostic tool, the RNA Disruption Assay.

The Sudbury-based med-tech startup announced on Sept. 9 that it’s received $8 million from a group of investors, led by iGan Partners, a Toronto-based venture capital firm, and the Crown corporation BDC Capital.

That money will enable Rna Diagnostics to complete its trial, called the breast cancer response evaluation for individualized therapy (BREVITY), which began in 2018.

“The continued support of iGan Partners and our current investors, combined with the support of BDC Capital as a new investment partner, is exciting,” said John Connolly, president and CEO of Rna Diagnostics, in a news release.

“The closing of this series A financing will allow us to complete the pivotal validation trial (BREVITY) of the RNA Disruption Assay™ (RDA)™. BREVITY is currently recruiting patients at over 40 breast cancer centres in Europe and North America.”

IGan led the way during an earlier round of funding, in 2018, worth $5 million. Rna Diagnostics has additionally received funding through the Northern Ontario Heritage Fund, FedNor, the Northern Cancer Foundation, and the angel investment firm Northern Ontario Angels.

The RNA Disruption Assay determines whether a patient’s tumour is responding to cancer therapy five weeks into treatment.

If the patient’s tumour isn’t responding, the oncologist can change course, cutting down on lost treatment time and considering other treatment methods that may be more effective.

Rna Diagnostics believes this approach could reduce harmful side effects for patients and improve their chances of survival. It could also reduce costs for cancer treatment centres.

“This is an enormous, expensive problem for cancer centres,” Connolly added. “Typically, in solid tumour cancers, only 30 to 40 per cent of patients receive a survival benefit from a given drug regimen.”

The RNA Disruption Assay was discovered by Dr. Amadeo Parissenti, a researcher and professor at Laurentian University, in 2007.

In moving the test towards commercialization, Parissenti later founded Rna Diagnostics, which operates out of Sudbury’s Health Sciences North Research Institute, the research arm of the local hospital, Health Sciences North.

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India likely to block Chinese investment in insurance giant LIC's IPO -sources – Financial Post

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NEW DELHI — New Delhi wants to block Chinese investors from buying shares in Indian insurance giant Life Insurance Corp (LIC) which is due to go public, four senior government officials and a banker told Reuters, underscoring tensions between the two nations.

State-owned LIC is considered a strategic asset, commanding more than 60% of India’s life insurance market with assets of more than $500 billion. While the government is planning to allow foreign investors to participate in what is likely to be the country’s biggest-ever IPO worth a potential $12.2 billion, it is leery of Chinese ownership, the sources said.

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Political tensions between the countries rocketed last year after their soldiers clashed on the disputed Himalayan border and since then, India has sought to limit Chinese investment in sensitive companies and sectors, banned a raft of Chinese mobile apps and subjected imports of Chinese goods to extra scrutiny.

“With China after the border clashes it cannot be business as usual. The trust deficit has significantly widen(ed),” said one of the government officials, adding that Chinese investment in companies like LIC could pose risks.

The sources declined to be identified as discussions on how Chinese investment might be blocked are ongoing and as no final decisions have been made.

India’s finance ministry and LIC did not respond to Reuters emailed requests for comment. China’s foreign ministry and commerce ministry did not immediately respond to requests for comment.

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Aiming to solve budget constraints, Prime Minister Narendra Modi’s administration is hoping to raise 900 billion rupees through selling 5% to 10% of LIC this financial year which ends in March. The government has yet to decide on whether it will sell one tranche of shares seeking to raise the full amount or choose to seek the funds in two tranches, sources have said.

Under current law, no overseas investors can invest in LIC but the government is considering allowing foreign institutional investors to buy up to 20% of LIC’s offering.

Options to prevent Chinese investment in LIC include amending the current law on foreign direct investment with a clause that relates to LIC or creating a new law specific to LIC, two of the government officials said.

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They added that the government was conscious of the difficulty in checking on Chinese investments that could come indirectly and would attempt to craft a policy that would protect India’s security but not deter overseas investors.

A third option being explored is barring Chinese investors from becoming cornerstone investors in the IPO, said one government official and the banker, although that would not prevent Chinese investors from buying shares in the secondary market.

Ten investment banks including Goldman Sachs, Citigroup and SBI Capital Market have been chosen to handle the offering.

($1 = 73.8200 Indian rupees) (Reporting by Aftab Ahmed and Manoj Kumar in New Delhi, Nupur Anand in Mumbai; Additional reporting by Beijing Newsroom; Editing by Sanjeev Miglani and Edwina Gibbs)

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ImpactAssets Strengthens Investment and Client Engagement With Three Strategic Promotions – Yahoo Finance

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Appointments reflect rapid growth as impact investments surge 60 percent and grants jump 76 percent in 2020.

Northampton, MA –News Direct– ImpactAssets

BETHESDA, Md., September 22, 2021 /3BL Media/ – ImpactAssets, a leading $1.6 billion impact investing firm, announced three promotions across its investment and business development teams:

  • Sandra Osborne Kartt, CFA has been promoted to Managing Director, Investments

  • Nick Peters has been promoted to Director, Investments

  • Deb Parsons has been promoted to Managing Director, Business Development

The promotions follow a rapid growth of the firm’s leading-edge impact investment offerings for individuals, advisors, foundations, corporations and other partners. In the face of the COVID-19 pandemic, ImpactAssets and its clients made 220 investments in funds and companies that are having a transformative impact on people and planet, totaling $415 million in impact investments. Clients also doubled down on their commitment to solving the world’s greatest challenges, generously giving $181 million in grants, a 76 percent increase.

CEO and Chief Investment Officer Margret Trilli said, “I am thrilled to announce these well-deserved promotions. Sandy and Nick have each been vital in building a best-in-class lineup of impact investments, leading the team in completing 21 due diligences last year, and Deb has been instrumental in strengthening top tier service amidst explosive growth in new clients. With continued expansion in our impact investment and charitable activity, I am tremendously excited to see what they will accomplish next.”

Sandra Osborne Kartt, CFA

As Managing Director of Investments, Sandra manages the team responsible for sourcing, due diligence and selection for investment options spanning asset classes and impact themes. With expertise in social equity and microfinance, she oversees the ImpactAssets’ Impact Notes Program. Prior to joining ImpactAssets, Sandra served as a Risk Officer at Developing World Markets, an impact investment asset manager focused on linking the capital markets and financial institutions serving the bottom of the pyramid in emerging and frontier economies. She also worked at Keefe Bruyette & Woods, a boutique investment bank, as a sell-side equity research analyst covering the U.S. banking industry. Sandra holds an MA in Economics from New York University, a BS in Economics from Louisiana State University, and is a Chartered Financial Analyst.

Nick Peters

Nick’s new duties as Director of Investments include overseeing the sourcing, due diligence and selection of investment options with expertise in Climate Solutions. Prior to ImpactAssets, Nick was on the investment teams at AiiM Partners and Factor[e] Ventures, where he led investments in early and growth stage investments delivering positive environmental and social change. He also worked as a Financial Fellow at Project Drawdown, where he focused on financial and impact modeling of climate solutions, mobilizing climate-friendly capital, and launching a new global modeling platform. Nick holds an MBA from the Haas School of Business at UC Berkeley and graduated Phi Beta Kappa from UCLA with a BA in Economics and International Studies.

Deb Parsons

As Managing Director of Business Development, Deb leads all client engagement and business development at ImpactAssets. She has 15+ years working with investors, donors and large-scale initiatives to create positive social and environmental change. Deb has played key roles in consulting projects focused on bringing together disparate stakeholders for a common good with specific focus on gender and racial equity. She has worked in both the for-profit and nonprofit sectors across impact areas. Deb holds an MBA from Kenan Flagler Business School, UNC Chapel Hill, where she was a Carolina Venture Fellow.

About ImpactAssets

ImpactAssets is the leading impact investing partner for individuals, families and philanthropists tackling the world’s greatest challenges by investing in the world’s brightest ideas. We make it easy for our clients to “discover, connect and invest” in game-changing entrepreneurs and funds. Founded in 2010, ImpactAssets increases flows of money to impact investing with our 100% impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers.

The ImpactAssets Donor Advised Fund is an innovative vehicle that empowers donors to increase the impact of their giving by combining it with strategic, sustainable and responsible investing to build a sophisticated philanthropic endowment. The Fund currently has more than $1.6 billion in assets in 1,700 donor advised funds, working with 350 wealth advisors across 60 financial services firms.

ImpactAssets is headquartered in Bethesda, with offices in New York City and San Francisco. Learn more at https://www.impactassets.org/ImpactAssets

View additional multimedia and more ESG storytelling from ImpactAssets on 3blmedia.com

View source version on newsdirect.com: https://newsdirect.com/news/impactassets-strengthens-investment-and-client-engagement-with-three-strategic-promotions-254721102

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