SEBI has issued Consultation paper on review of regulatory framework for Angel Funds in AIF Regulations. This paper aims to seek views from public on the need for channelizing capital from Angel investor pools through a regulated structure. If the need for a regulatory environment for Angel Funds is acknowledged, this paper also aims to seek views on proposals to streamline regulatory framework for Angel Funds to
- Rationalise their fundraising processes,
- Strengthen disclosure and governance requirements, and,
- Provide operational clarity and investment flexibility.
These proposals aim to, inter-alia, restrict Angel Funds to investors with commensurate risk appetite and ability to evaluate investment proposals, while also enhancing the ease of doing business in this space. The comments / suggestions shall be submitted on or before November 28, 2024, via online web-based form.
