Sebi plans to raise angel funding cap to Rs 25 crore from Rs 10 crore

BENGALURU: Markets regulator Sebi on Wednesday sought public consultation on reducing the minimum investment threshold for angel investments from Rs 25 lakh to Rs 10 lakh, whilst raising the maximum limit from Rs 10 crore to Rs 25 crore. The document welcomes public feedback on its proposals until Nov 28, and aims to enhance the regulatory structure for angel funds.

The objectives include simplifying fundraising procedures, enhancing disclosure requirements, and ensuring clearer operational guidelines. As a vital funding source for startups, Sebi’s records show 82 registered angel funds as of March this year, with total commitments of Rs 7,053 crore and investments worth Rs 3,343 crore in this category. Sebi has also raised concerns regarding the regulatory framework of angel funds.

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