Markets Regulator Sebi Plans to Reduce Minium VC Funding To Rs 25 Lakh From Rs 50 lakh
Looking to provide an impetus to the early-stage startup ecosystem, markets regulator Sebi plans to reduce minimum angel fund investment for venture capital undertakings to Rs 25 lakh from the current Rs 50 lakh.
Sebi may also allow the angel funds to make overseas investments up to 25 percent of their investible corpus, in line with other Alternative Investment Funds (AIFs). The move will make such funds to spread their risk by investing across geographies, sources said.
There are many start-ups that require a smaller amount of validating proposition and bringing down the limit to Rs 25 lakh will help such companies raise funds at the initial stage of idea generations.
Also, the Securities and Exchange Board of India (Sebi) plans to align its definition of startups with other reg...