The Securities Exchange Board of India (SEBI) on November 13, 2024, issued a consultation paper on a review of the regulatory framework for Angel Funds in AIF Regulations.
The following has been stated namely: -
• The SEBI’s Alternative Investment Policy Advisory Committee (AIPAC) has recommended 24 proposals on continuing with Angel Funds as a regulated structure, such as:
o Proposal 1 - Should investments by Angel Investor pool through Angel Funds continue to be regulated by SEBI under AIF Regulations?
o Proposal 2 - To replace the existing eligibility criteria for Angel Investors by allowing only Accredited Investors to be on-boarded as investors to Angel Funds.
o Proposal 20 - To mandate PPM Audit requirement for Angel Funds having total investments of more than INR 100 crore.
o Proposal 21 - Angel Funds shall conduct their first close, by on-boarding minimum of 5 Accredited investors, within 12 months from the date of SEBI communication for taking their PPM on record
o Proposal 23 - To retain the prohibition on listing of units of Angel Funds.
• The comments/suggestions shall be submitted on or before November 28, 2024, via an online web-based form through the following link: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComm
