Investment In Startups : Market regulator SEBI on Wednesday proposed to increase the maximum limit of angel fund investment in startups to Rs 25 crore. This move is expected to give a boost to cutting-edge technology companies. The Securities and Exchange Board of India (SEBI) said that it is proposed to reduce the minimum investment limit from the current Rs 25 lakh to Rs 10 lakh and the maximum investment limit from the current Rs 10 crore to Rs 25 crore.

And what are the objectives of SEBI

Apart from this, SEBI has proposed to allow only 'accredited investors' to invest in angel funds. The aim is to rationalize their fundraising process, strengthen disclosure as well as handle system requirements, and provide operational clarity and robustness at the investment level.

The proposals are aimed at restricting angel funds to investors who have the ability to take risks and evaluate investment proposals and will also improve the ease of doing business in the sector.

Suggestions sought on proposals.

Angel Fund Category I Alternative Investment Fund is a type of venture capital fund. Under this, startups are provided capital from angel investors. There are 82 angel funds registered with SEBI as of March 31, 2024. Their total commitment was Rs 7,053 crore and investment was Rs 3,343 crore.

SEBI said, "The investment by angel funds in any startup will be a minimum of Rs 10 lakh and a maximum of Rs 25 crore." The regulator has sought suggestions from the people on the proposal by November 28.