Self-Reliant India (SRI) Fund: Equity Capital for MSMEs
Last updated: 2026-11-13 · MockMentor
The Self-Reliant India (SRI) Fund, set up in 2020, is a fund of funds that gives equity and equity-like growth capital to promising MSMEs and helps them list on stock exchanges. The Government puts in ₹10,000 crore, which daughter funds lever into ₹50,000 crore.
In one line: Government money invested through private funds to give growing MSMEs equity, not just loans.
At a glance
| Item | Details |
|---|---|
| Set up | 2020 |
| Structure | Mother fund and daughter funds |
| Government corpus | ₹10,000 crore |
| Total fund size | ₹50,000 crore |
| Mother fund | Category II Alternative Investment Fund registered with SEBI |
| Ratio | 20% mother fund, 80% raised by daughter funds |
| Manager | SBICAP Ventures; anchor investor NSIC Venture Capital Fund |
Key rules
- Daughter funds are SEBI-registered Category I or II AIFs that invest in MSMEs.
- Minimum allocation ₹25 crore; maximum ₹2,000 crore per daughter fund.
- 15-year life with a 13-year investment period.
- Not for financial sector firms, micro-credit, SHGs or non-profit NBFCs.
Possible exam questions
- Why is equity finance scarce for Indian MSMEs? Assess the Self-Reliant India Fund.
- Compare debt and equity as sources of finance for growing small firms.
Complete notes in our courses: this page gives the essentials. The Super-Elite and Elite courses carry the full chapter with every update merged in, plus practice MCQs. Compare the courses.
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