The government will soon come out with clarifications on the sale of medicines online, acceding to requests of start-ups seeking a legal framework for e-pharmacy business. \u201cThe ministry of health is working on clarifications on this issue,\u201d commerce and industry minister Nirmala Sitharaman said on Monday. The Drugs and Cosmetics Act\u2014which regulates the import, manufacturing, distribution and sale of drugs and cosmetics in the country \u2014 doesn\u2019t explicitly disallow the sale of medicines online with a valid prescription, although more clarity is required on this issue, some analysts have said. E-pharmacy players, in recent months, have come under attack from off-line chemist stores that allege that the former are violating foreign direct investment (FDI) rules by offering discounts. Off-line chemist stores have also raised concerns about the quality of drugs sold by online players. Already, the uncertainties have hit some start-ups. Phaneesh Murthy-backed online pharma market place Zigy.com has trimmed operations substantially following court cases brought by offline chemists and druggists. DIPP in talks on start-up funding The Department of Industrial Policy and Promotion (DIPP) has initiated discussions with certain financial sector regulators like the IRDAI and the PFRDA on allowing insurance companies like LIC as well as pension funds to invest in start-ups, DIPP secretary Ramesh Abhishek said. The DIPP move follows comments by various start-ups that while large insurance firms invest mainly in risky assets like stocks, they don\u2019t fund start-ups. DIPP calls meeting of SIDBI, VCs The DIPP has convened a meeting on February 2 of SIDBI, venture capitalists, various incubators and accelerators associated with start-ups, Sitharaman said after holding a comprehensive meeting devoted to only incubators that play a major role in boosting the start-up eco-system. SIDBI manages the \u2018fund of funds\u2019 of R10,000 crore, which was part of the package announced by Prime Minister Narendra Modi last year to help start-ups. The fund is supposed to invest in Sebi-registered Alternative Investment Funds which, in turn, will invest in start-ups. In the meeting with Sitharaman, some incubators have pitched for adequate tax incentives DIPP for credit guarantee fund The DIPP has sought the approval of the expenditure finance committee of the finance ministry for setting up a credit guarantee fund, Abhishek said. The proposed R2,000-crore fund, a part of the corpus meant for the fund of funds, will provide up to 80% risk cover for collateral-free credit being given by banks to start-ups.