Is it a diversion of ‘pass a parcel’? High startup valuations worry RBI dy guv Mundra

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Mumbai – With a valuations of startups rising by a day and many heading investors like Ratan Tata and Vinod Khosla already doubt their astronomical pricing, Reserve Bank emissary administrator SS Mundra also wondered either a valuations are fit or not.

SS Mundra. GettyImagesSS Mundra. GettyImages

SS Mundra. GettyImages

Making it transparent that these are not a central views of a Reserve Bank, Mundra said, “rightfully or wrongfully, infrequently we worry either it will be like a diversion of ‘pass a parcel’, and when a song stops, a final authority will be left holding a parcel.”

“But we am not flitting on any settlement nor are these a central views of a RBI. RBI does not have any central views on a matter,” he said.

Talking to reporters on a sidelines of a CII eventuality here on Wednesday, he pronounced a startup space is a absolute rising trend and has seen a lot of success.

“But we have seen a few cases in a really new time, that a startups arrived on a scene, got a lot of support from a moneybags, a lot of liquidity is available. There is a vigour on a promoters and a association to scale adult too quick but formulating a ancillary control and compliance
ecosystems,” he said.

There is a need to practice some counsel in this regard, he said.

“One thing, nonetheless we am not directly endangered with it, is a kind of valuations, yet we do not doubt either a valuations are right or wrong.

“If there is abounding liquidity available, it does not meant a compulsory control or a ecosystem or a logistics should not be in a place,” he said.

Recently, Ratan Tata, authority emeritus of a Tata Group, who himself has put in millions of dollars into over 15 startups, took a puncture during e-commerce zone observant their valuations are “very high”.

PTI

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