SEBI recently made amendments by announcing new guidelines for angel funds in India.
Ajeet Khurana from mumbai angel's give's it a thumbs up on moneycontrol
According to sebi :
i ‘Angel Funds’ shall be included in the definition of “Venture Capital Funds” under the SEBI (Alternative Investment Funds) Regulations, 2012.
ii. Individual angel investors shall be required to have early stage investment experience/ experience as a serial entrepreneur/ be a senior management professional with 10 years experience. They shall also be required to have net tangible assets of atleast Rs. 2 crore. Corporate angel investors shall be required to have Rs. 10 crore net worth or be a registered AIF/VCF.
iii. Angel Funds shall have a corpus of atleast Rs.10 crore (as against Rs. 20 crore for other AIFs) and minimum investment by an investor shall be Rs. 25 lakh (may be accepted over a period of maximum 3 years) as against Rs. 1 crore for other AIFs. Further, the continuing interest by sponsor/manager in the Angel Fund shall be not less than 2.5% of the corpus or Rs. 50 lakh, whichever is lesser.
iv. For ensuring investments are genuine angel investments, angel funds shall invest only in investee companies which:
a. are incorporated in India and are not more than 3 years old; and
b. have a turnover not exceeding Rs. 25 crore; and
c. are unlisted, and
d. are not promoted, sponsored or related to an Industrial Group whose group turnover is in excess of Rs.300 crore, and
e. has no family connection with the investors proposing to invest in the company.
v. Further, investment in an investee company by an angel fund shall be not less than Rs.50 lakh and not more than Rs. 5 crore and shall be required to be held for a period of at least 3 years.
I feel it's a harsh measure and many people who would want to risk an angel investment even if they do not have a 2 crore asset or who want to invest less than 50 lakhs will be highly disappointed.
Angel investor term came into existence when some people started puchasing equity in an entrepreneurs venture when they needed it the most and helped them survive.
With the SEBI laying guidelines and interfering, the very meaning of "angel investor" has changed.
What do you think about SEBI new guidelines for angel investment in India - good? Bad? Ugly?
Would love to hear your opinion :ear:
Ajeet Khurana from mumbai angel's give's it a thumbs up on moneycontrol
According to sebi :
i ‘Angel Funds’ shall be included in the definition of “Venture Capital Funds” under the SEBI (Alternative Investment Funds) Regulations, 2012.
ii. Individual angel investors shall be required to have early stage investment experience/ experience as a serial entrepreneur/ be a senior management professional with 10 years experience. They shall also be required to have net tangible assets of atleast Rs. 2 crore. Corporate angel investors shall be required to have Rs. 10 crore net worth or be a registered AIF/VCF.
iii. Angel Funds shall have a corpus of atleast Rs.10 crore (as against Rs. 20 crore for other AIFs) and minimum investment by an investor shall be Rs. 25 lakh (may be accepted over a period of maximum 3 years) as against Rs. 1 crore for other AIFs. Further, the continuing interest by sponsor/manager in the Angel Fund shall be not less than 2.5% of the corpus or Rs. 50 lakh, whichever is lesser.
iv. For ensuring investments are genuine angel investments, angel funds shall invest only in investee companies which:
a. are incorporated in India and are not more than 3 years old; and
b. have a turnover not exceeding Rs. 25 crore; and
c. are unlisted, and
d. are not promoted, sponsored or related to an Industrial Group whose group turnover is in excess of Rs.300 crore, and
e. has no family connection with the investors proposing to invest in the company.
v. Further, investment in an investee company by an angel fund shall be not less than Rs.50 lakh and not more than Rs. 5 crore and shall be required to be held for a period of at least 3 years.
I feel it's a harsh measure and many people who would want to risk an angel investment even if they do not have a 2 crore asset or who want to invest less than 50 lakhs will be highly disappointed.
Angel investor term came into existence when some people started puchasing equity in an entrepreneurs venture when they needed it the most and helped them survive.
With the SEBI laying guidelines and interfering, the very meaning of "angel investor" has changed.
What do you think about SEBI new guidelines for angel investment in India - good? Bad? Ugly?
Would love to hear your opinion :ear: