India’s Securities and Exchange Board (“Sebi”)has attempted to halt all crowdfunding, by pronouncing the largest funding portals as unauthorized, unregulated and illegal.
One large platform was asked to stop “on boarding” new investors.
“According to Sebi, only recognised stock exchanges can provide electronic platforms where equity and other corporate securities could be listed and traded. Incidentally, Sebi diktat comes at a time when ECPs are doing brisk business – enlisting more angel investors and raising “small working capital” (average ticket size:Rs 50 lakh to Rs 6 crore) for startups.”
The Indian crowdfunding market is relatively mature, with over 200 companies having been funded to date.