The document summarizes the post downturn perils and prospects of private equity in India. It discusses the history of PE in India, the regulatory framework, recent reforms, and challenges like Asian LP disappointment and decreased VC confidence. However, it also outlines prospects like the increasing size of the private equity market globally and in India. It concludes by discussing ways forward such as new regulations, the convergence of hedge funds and PE, and the demand for more of an owner mentality approach.

1. Research Paper on Post Downturn Perils & Prospects of Private Equity in India AMITABH VATSYA NITIE, Mumbai Email: amitabhhelios@gmail.com Website: http://alphaphile.blogger.com http://in.linkedin.com/in/amitabhvatsya

3. History of PE in India

4. PE deals in India

5. Regulatory Framework in India

6. Perils of PE in India

7. Recent Reforms

8. Asian LP disappointment

9. Decrease in VC Confidence

10. Transfer Pricing

11. Treaty based structures

12. Prospects of PE in India

13. Pie is getting bigger

14. Performance paradox

15. Laws of attraction

16. Way forward

17. Demand for owner mentality

18. Budget Impact

19. Hedge fund – PE convergence

20. New RegulationsIntroduction PE in India - History of PE - Present Status of PE - Regulatory Framework Perils for PE in India - Recent Reforms - Asian LP disappointment - VC’s low in confidence -Transfer Pricing -Treaty based structures Prospects of PE in India - Pie is getting bigger - Performance Paradox - Laws of attraction Way Forward - New Regulations - Budget Impact - Hedge fund & PE - Owner Mentality

22. Problem of inadequate funding and financial structure

24. Economic liberalization of 1991

25. Doors opened for foreign companies in 1995

26. It revolution of 1997

27. Maturing of PE and VC after 2008 recession.Introduction PE in India - History of PE - Present Status of PE - Regulatory Framework Perils for PE in India - Recent Reforms - Asian LP disappointment - VC’s low in confidence -Transfer Pricing -Treaty based structures Prospects of PE in India - Pie is getting bigger - Performance Paradox - Laws of attraction Way Forward - New Regulations - Budget Impact - Hedge fund & PE - Owner Mentality

29. No. of PE in Deals in 2003 : 56

31. Statutory framework governing FI in India

32. Role of Reserve Bank of India

33. SEBI regulations

35. Indian tax laws.

36. Capital gain tax regime

37. Double Taxation Avoidance Treaty (DTAT)Introduction PE in India - History of PE - Present Status of PE - Regulatory Framework Perils for PE in Indian - Recent Reforms - Asian LP disappointment - VC’s low in confidence -Transfer Pricing -Treaty based structures Prospects of PE in India - Pie is getting bigger - Performance Paradox - Laws of attraction Way Forward - New Regulations - Budget Impact - Hedge fund & PE - Owner Mentality

40. Damaged the perception of asset class

41. Change in risk appetite and investment criteria

43. Decreased chances of investment in PE

45. Impact

46. Reduced propensity to invest by a Venture Capitalist

48. Overall Tax risk management strategy

50. Historical Models such as Cost plus may no longer be appropriate

51. Transfer Pricing is neither an exact science nor a static target Introduction PE in India - History of PE - Present Status of PE - Regulatory Framework Perils for PE in Indian - Recent Reforms - Asian LP disappointment - VC’s low in confidence -Transfer Pricing -Treaty based structures Prospects of PE in India - Pie is getting bigger - Performance Paradox - Laws of attraction Way Forward - New Regulations - Budget Impact - Hedge fund & PE - Owner Mentality

53. country taxation

54. By investing in Treaty protected special holding

55. companies

56. Indian Scenario

57. Tax authorities scrutinizing PE investments

58. High profile Vodafone case

61. Forecasted to grow to $ 3.5 trillion by 2015

62. Pie is getting bigger

64. Average IRR of vintage year investments

65. Europe : 17.4%

66. US : 12.67%

68. Deal activity declined by 39 % ( volume wise)

69. India accounted for only 2% of the global PE deals value in 2009

72. Reduced registration and renewal fees by FIIs

73. REIT Regulation for exit option awaited

74. Draft for REIT Regulation is ready, final verdict to be delivered Introduction PE in India - History of PE - Present Status of PE - Regulatory Framework Perils for PE in Indian - Recent Reforms - Asian LP disappointment - VC’s low in confidence -Transfer Pricing -Treaty based structures Prospects of PE in India - Pie is getting bigger - Performance Paradox - Laws of attraction Way Forward - New Regulations - Budget Impact - Hedge fund & PE - Owner Mentality

77. Increased Minimum Alternate Tax

79. Distress debt investing – a potential area

82. Highly motivated owner executives

83. A talented Board of Directors

84. Strategy formulation

85. Managerial expertise