Angel Funds Must Not Invest In Companies Older Than 3 Years, Says SEBI

by Paul Joseph on June 26, 2013 · 0 comments

The Securities and Exchange Board of India (SEBI) has officially announced changes to the way Angel Funds operate in India. The most prominent change is that Angel Funds now cannot invest in companies that are more than 3 years old. Other changes include the addition of ‘Angel Funds’ to the definition of Venture Capital Funds. The requirement for individual angel investors is that they have early stage investment experience or be a serial entrepreneur or a senior management professional with 10 years of experience.  Individual angel investors also need to have net tangible assets of atleast Rs. 2 crore. Corporate angel investors need Rs. 10 crore as net worth or be registered with AIF/VCF. Angel funds should have a corpus of Rs. 10 crore and a minimum investment is limited to Rs.2 crore.  Conditions for investing in companies are that the company be not more than 3 years old, have a turnover not exceeding Rs. 25 crore, are unlisted, are not promoted/sponsored/related to an industrial group with a turnover of more than Rs.300 crore and have no family connections with investors. Angel funds must have a total investment in a company which is not less than Rs.50 lakh and not more than Rs.5 crore and this shall be required to be held for at least 3 years. Overall, these new changes are good for Indian startups even though they place certain restrictions on Angel investors. Full SEBI Angel Funds policy statement here . Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via WATBlog.com – Web, Advertising and Technology Blog in India]

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