New Delhi, April 25 -- The Department for Promotion of Industry and Internal Trade (DPIIT) has issued the operational guidelines for the Rs.10,000 crore Startup India Fund of Funds 2.0, setting out the framework for deployment of capital to strengthen India's startup financing ecosystem.

The corpus will be committed across the 16th and 17th Finance Commission cycles, as per a statement released by the Ministry of Commerce & Industry on Saturday.

The scheme will not invest directly in startups. Instead, it will invest in Sebi-registered Category I and Category II Alternative Investment Funds (AIFs), which will in turn deploy money into DPIIT-recognised startups through equity, equity-linked instruments and debt instruments.

The move is ...