Regulatory framework for Angel Funds to facilitate investments in start-ups
Published By : Sourabha Parida | July 1, 2022 6:09 PM
Share
New Delhi, July 1: The International Financial Services Centres Authority (IFSCA), in furtherance of its mandate to develop and regulate financial products, financial services and financial institutions in the International Financial Services Centres (IFSC), had notified the IFSCA (Fund Management) Regulations, 2022 in April 2022 enabling the regulatory framework for various activities related to fund management including schemes for investing in early-stage venture capital undertaking (start-ups). Angel Funds bridge the gap between start-ups and angel investors, who are instrumental in providing mentoring, and resources to the start-ups. In recognition of the same, IFSCA has now issued a framework for Angel funds under the IFSCA (Fund Management) Regulations, 2022. The salient features of the said framework are as under: wp:list {"ordered":true,"type":"1"} A Fund Management Entity (FME) in IFSC will be able to launch Angel Fund by filing a placement memorandum with the Authority under a Green Channel, i.e. the schemes can open for subscription by investors immediately upon filing the placement memorandum with the Authority.Angel Funds shall accept investments from accredited investors or investors who are willing to commit at least USD 40,000 over 5 years.Angel Funds are permitted to invest in start-ups as well as other regulated angel schemes in IFSC, India, foreign jurisdictions upon receiving consent from the desirous investors.While investment(s) by an Angel Fund in a start-up is capped at USD 1,500,000, the Angel fund is permitted to invest in subsequent rounds of fund raising by the start-up in order to protect its shareholding from dilution, subject to certain conditions. /wp:list
Prameya English Is Now On WhatsApp Join And Get Latest News Updates Delivered To You Via WhatsApp
You Might Also Like
More From Related News
22 Maoist cadres surrender before security forces in C’garh
Regulatory failure never led to Jane Street’s illegal acts in India: Madhabi Buch
Former Tennis player Radhika Yadav shot dead by father in Gurugram
Final Countdown: Axiom Mission 4 Crews are wrapping up their Research Ahead of ISS Departure
"90% fatalities in state political violence are Muslims": New Bengal BJP Chief
New batch of 6,482 pilgrims depart for Amarnath Yatra 2025, total yatris exceed 1.45 lakh
Amit Shah chairs 27th meeting of the Eastern Zonal Council in Jharkhand
Kapil Sharma’s Kap’s Café in Canada attacked by Khalistani terrorists!
Punjab Cabinet approves Rs 10 lakh health insurance cover for all families
On Guru Purnima, two students stabbed principal to death in Haryana’s Hisar
CBI picks Chief Manager MCL red-handed, detained
Bihar Election: SC allows voter list revision, suggests Aadhaar, Ration Cards as valid ID proof
Starlink's India Entry: Elon Musk's Satellite Internet Service Gets Crucial Nod from IN-SPACe
Odisha tops in private investments, says Industries Minister Sampad Swain
IAF’s Jaguar trainer aircraft crashes in Rajasthan’s Churu
Air India Tragedy: Investigators Zero in on Cockpit Fuel Switches
Masood Azhar's Voice Emerges from Pakistan with Chilling Threats Against India
PM Modi in Namibia: Bilateral Talks and Parliamentary Address on Agenda for Final Stop of Five-Nation Tour
‘Don’t Follow Godse’—Stalin Urges Tamil Nadu Students to Back Statewide Campaign
Bhubaneswar all set to host National Fish Farmers’ Day tomorrow; Three Central Ministers to attend