India’s Crowdfunders “Illegal”

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.
http://economictimes.indiatimes.com/articleshow/54202702.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, Investments, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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