SEBI Looking To Expand Investor Pool For Angel Funds

Markets regulator Securities and Exchange Board of India (SEBI) is reportedly looking to expand the definition of qualified institutional buyers (QIB) by enabling angel funds to access a broader pool of accredited investors.

Additionally, the SEBI has proposed removing the 200-investor cap for angel funds, PTI reported, adding that private placements cannot be offered to more than 200 investors unless they are QIBs under the Companies Act.

QIBs are institutional investors like mutual funds, banks, financial institutions, insurance companies, and foreign institutional investors (FIIs) who invest in securities that may not be available to retail investors.

This move is expected to boost the engagement of wealthy investors, which strengthens funding for startups, as per the report.

The move also ensures that only financially strong investors will be able to make their bet on high-risk investments, helping angel funds raise more capital and support early stage companies.

(The story will be updated soon.)

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