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24
November 2016
To further develop the alternative
investment industry and the start-up ecosystem in India, securities market
regulator Sebi on Wednesday enhanced the number of 'Angel Funds' in one scheme
from 49 to 200. The Total Investment
& Insurance Solutions
The regulator announced the changes that
are expected to give a boost to the start-up industry after its board met
here. The Total Investment &
Insurance Solutions
According to the regulator, the upper
limit for the number of angel investors in a scheme has been increased by
amending -- 'Alternative Investment Funds Regulations, 2012 regarding Angel
Funds'.
"Accordingly, Angel Funds will be
allowed to invest in start-ups incorporated within five years, which was
earlier three years," the regulator said in a statement. The Total Investment & Insurance
Solutions
The regulator pointed out that the
requirement of minimum investment amount by an Angel Fund in any venture
capital undertaking has been reduced from Rs 50 lakh to Rs 25 lakh. The Total Investment & Insurance
Solutions
"The lock-in requirements of
investment made by Angel Funds in the venture capital undertaking is reduced
from three years to one year," the statement said. The Total Investment & Insurance Solutions
To mitigate investment risk, Sebi allowed
Angel Funds to invest in overseas venture capital undertakings by up to 25 per
cent of their investible corpus in line with other AIFs (alternative investment
funds).
On its part, India Inc. welcomed the
relaxations proposed by Sebi board.
"While this is a positive news for
Angel investors which will augment and strengthen their presence, it will also
open multiple avenues for entrepreneurs who intend to seamless exercise their
ideas and skills into the business arena," said Gopal Srinivasan,
Chairman, Indian Private Equity and Venture Capital Association (IVCA). The Total Investment & Insurance
Solutions
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