New Delhi: The government will devise better regulations to govern angel and venture capital investments in start-ups, finance minister Arun Jaitley said on Thursday but stopped short of announcing specific policies.

Investors have been clamouring for a reduction and simplification of the so-called angel tax, which refers to taxes on investments in unlisted companies.

In December, former Infosys executive and start-up investor T.V. Mohandas Pai urged the government to fix the angel tax issue, which along with other regulatory issues, has prompted many companies to incorporate outside India.

“Sir, start-ups are getting harassed by IT for raising capital, threatening to consider it as income! Very bad scene and very many are angry and upset, may shift overseas. Appeal process broken, takes 15 years. Pl intervene," Pai wrote then on Twitter to Jaitley and others.

On Thursday, Jaitley said in his budget speech that the government will make changes to the policies governing venture capital and angel investments in start-ups. He didn’t specify the changes.

Separately, Jaitley said the government will explore the use of blockchain to improve governance.

The finance minister also said that the government will introduce measures to help the expansion of financial technology start-ups in order to make it easier for small and medium enterprises to access capital.

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