Self Reliant India (SRI) Fund
About Self Reliant India (SRI) Fund
In line with the vision of Shri Narendra Modi, Honorable Prime Minister of India, the Hon’ble Finance Minister, announced creation of a Fund of Funds (FoF) for Micro, Small and Medium Enterprises (MSMEs) under the Atmanirbhar Bharat package on the 13th May 2020, to address severe shortage being faced by MSMEs in securing growth capital.
Consequently, NSIC Venture Capital Fund Limited (NVCFL), a 100% subsidiary of National Small Industries Corporation Limited (“NSIC”), a Mini-Ratna Corporation of Government of India under Ministry of Micro, Small and Medium Enterprises (MoMSME), Government of India, was incorporated.
The ‘Self Reliant India (SRI) Fund’ (Fund) with an overall fund corpus of Rs. 10,006 cr is organised as the first scheme of NVCFL. NVCFL is registered with the Securities and Exchange Board of India (“SEBI”) as a Category II Alternative Investment Fund under the provisions of the SEBI (Alternative Investment Fund) Regulations, 2012 (“AIF Regulations”). SRI Fund has been sponsored by NSIC and NVCFL. The anchor investor of the Fund is the Government of India.
SRI Fund will employ a ‘Fund-of-Fund’ investment strategy wherein the Fund shall invest in SEBI registered Category I and Category II Alternative Investment Funds (“Daughter Funds”), which shall in turn invest in MSMEs. The Daughter Funds shall invest at least 5 times the amount of capital contribution received from SRI Fund (net of fees and expenses) in MSMEs, as per the Micro, Small & Medium Enterprises Development Act 2006.
The objective of the Fund is to provide funding support to the Daughter Funds for onward provision to MSMEs as growth capital, through equity, quasi-equity and debt, as may be permitted under relevant SEBI guidelines to achieve the following objectives:
- Enhancing equity, quasi equity and debt financing, as permitted under relevant SEBI guidelines, to MSMEs;
- Supporting faster growth of MSME businesses and thereby ignite the economy and create employment opportunities;
- Supporting enterprises which have the potential to graduate beyond the MSME bracket and become National / International champions; and
- Supporting MSMEs which help making India self-reliant by producing relevant technologies, goods and services
Through a quality and cost based selection tender, NVCFL has appointed SBICAP Ventures Ltd (SVL) as the Investment Manager of the Fund. SVL is, an asset management company that is a wholly owned subsidiary of SBI Capital Markets Ltd which in turn is a wholly owned subsidiary of the State Bank of India.