Angel funds see red in Sebi's new accredited investors-only proposal
Business Standard|November 16, 2024
The Securities and Exchange Board of India's (Sebi's) proposal to allow only "accredited investors" to invest in angel funds has raised concerns in some quarters, even as most fund managers believe the overall ecosystem was set for a boost.
KHUSHBOO TIWARI
Angel funds see red in Sebi's new accredited investors-only proposal

This week, the market regulator suggested about two dozen measures, which include greater flexibility in the investments by angel funds with reduced investment limit, higher investment thresholds, and lower lock-in requirement.

The regulator has also sought suggestions if only "accredited investors" should invest in angel funds. Accredited investors are required to fulfil net worth criteria and get it verified by a third-party agency. The proposal keeps out investors without the necessary wherewithal of investing in startups, which is seen as highly risky and thus necessitate assessment of investor's risk appetite.

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