The correct answer is: A. Takeover the functions of small business financing of IDBI.
SIDBI (Small Industries Development Bank of India) was set up in 1989 as a subsidiary of IDBI (Industrial Development Bank of India) to take over the functions of small business financing of IDBI. SIDBI is a development financial institution (DFI) that provides financial assistance to small and medium enterprises (SMEs) in India. It also provides support services to SMEs, such as training, technology transfer, and market development.
Option B is incorrect because SIDBI was not set up to takeover the venture capital operations of ICICI. ICICI Venture is the venture capital arm of ICICI Bank. It was set up in 1996 to provide equity and debt financing to early-stage and growth-stage companies.
Option C is incorrect because SIDBI was not set up to reconstruct and rehabilitate the sick and closed industrial units financed by IDBI. The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) was enacted to provide for the revival, rehabilitation and winding up of sick industrial companies. The Board for Industrial and Financial Reconstruction (BIFR) was set up under SICA to implement the provisions of the Act.
Option D is incorrect because SIDBI was not set up to facilitate, finance and promote India’s foreign trade. The Export-Import Bank of India (Exim Bank) was set up in 1982 to promote India’s foreign trade. Exim Bank provides financial assistance to exporters and importers, and also provides guarantees and insurance cover for foreign trade transactions.