LIVE TV DownloadNews18 App
News18 English
»
2-min read

SEBI Looks to Boost Startup Funding, Plans to Ease Rules for Angel Funds

Markets regulator SEBI plans to halve the minimum corpus size required for an angel fund to register with it to Rs 5 crore.

PTI

Updated:March 25, 2018, 9:02 PM IST
facebookTwittergoogleskypewhatsapp
SEBI Looks to Boost Startup Funding, Plans to Ease Rules for Angel Funds
In this file photo, the logo of the Securities and Exchange Board of India (SEBI) is seen on the facade of its headquarters building in Mumbai. (Image: Reuters/Shailesh Andrade)
Loading...
New Delhi: Looking to provide an impetus to the early-stage startup ecosystem, markets regulator SEBI plans to increase the maximum investment by angel funds in venture capital undertakings to Rs 10 crore from the current Rs 5 crore.

In this fast changing ecosystem, wherein angels are investing much higher amounts, such increase is needed to provide more opportunities to angel funds, regulatory officials said.

However, the minimum investment by an angel investor will continue to be Rs 25 lakh.

Further, SEBI plans to halve the minimum corpus size required for an angel fund to register with it to Rs 5 crore. The regulator is considering to raise the maximum period of accepting funds from an angel investor to five years from the present limit of three years, they added.

The move will provide angel funds more time to identify opportunities and invest in venture capital firms.

The issue will be discussed at the board meeting of the Securities and Exchange Board of India (SEBI) this week.

Angel funds, a sub-category of Alternative Investment Funds (AIFs), encourage entrepreneurship in the country by financing small startups at a stage where such firms find it difficult to obtain capital from traditional sources of finance such as banks and financial institutions.

In addition, angel funds offer mentoring to entrepreneurs as well as access to their own business networks.

Currently, 398 AIFs are registered with SEBI, of which 114 are registered under Category I, including eight angel funds.

In line with the Companies Act, the regulator is looking to amend SEBI (Registrars to an Issue and Share Transfer Agents) norms and Sebi (Banker to an Issue) regulations that will enable a registrar as well as banker to an issue to maintain records of books of accounts and documents for a minimum period of eight years after completion of the relevant transactions.

Besides, Sebi plans to provide an option to listed companies for distribution of cash benefits -- dividend of equity and preference shares as well as interest and maturity proceeds on debt instruments -- through the depositories in addition to the present system of distribution either directly by them or through the registrar to an issue and share transfer agents.

At present, there is a restriction on listed companies availing services of depositories for distribution of cash benefits.

Catch the biggest newsmakers and the biggest newsbreaks on CNN-News18, the only news destination. Keep watching CNN-News18 at just 50 paise per month. Contact your cable/DTH operator now!

*Rental/capacity fee of Rs. 130/- as charged by cable/DTH operator may apply. **GST extra.
| Edited by: Bijaya Das
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Reliance 1,184.35 4.40
Jet Airways 281.20 -1.44
Yes Bank 198.60 -1.44
HUL 1,744.10 -0.42
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Reliance 1,182.95 4.34
ICICI Bank 371.90 -0.39
Jet Airways 281.35 -1.21
Yes Bank 198.25 -1.59
Top Gainers
Company Price Change %Gain
Reliance 1,184.35 4.40
Wipro 346.15 3.21
Kotak Mahindra 1,240.20 1.66
Hindalco 208.80 1.36
Adani Ports 399.30 1.22
Company Price Change %Gain
Reliance 1,182.95 4.34
Kotak Mahindra 1,237.35 1.41
HCL Tech 964.50 1.02
Asian Paints 1,401.30 0.85
ONGC 146.25 0.79
Top Losers
Company Price Change %Gain
Sun Pharma 390.75 -8.39
Bharti Airtel 311.15 -6.29
GAIL 322.15 -3.08
Larsen 1,317.90 -2.09
HPCL 239.50 -1.92
Company Price Change %Gain
Sun Pharma 390.75 -8.52
Bharti Airtel 310.95 -6.42
Larsen 1,318.25 -2.07
Axis Bank 664.30 -1.77
Yes Bank 198.25 -1.59

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results