IFSCA issued Regulatory framework for Angel Funds to facilitate investments in start-ups (01/07/2022)

advtanmoy 01/07/2022

“angel investor” meansan investor including a Venture Capital Scheme or Restricted Scheme set up in an IFSCandsimilar regulated scheme or fund set up in India or foreign jurisdiction, andinvests in an angel fundin accordance with the provisions of this Circular.

In exercise of the powers conferred by Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with Regulations18, 144 and 146 of the IFSCA (Fund Management) Regulations, 2022, and in recognition of the crucial role played by angel investors in nurturing entrepreneurship by providing the much-needed early-stage financingto start-ups, the International Financial Services Centres Authority (Authority) hereby specifies the following frameworkfor Angel Funds,specifically attuned to the requirements ofearly-stage investing.

Angel Funds under IFSCA (Fund Management) Regulations, 2022


DATE: 01 JUL 2022 
 

The International Financial Services Centres Authority (IFSCA), in furtherance of its mandate to develop and regulate financial products, financial services and financial institutions in the International Financial Services Centres (IFSC), had notified the IFSCA (Fund Management) Regulations, 2022 in April 2022 enabling the regulatory framework for various activities related to fund management including schemes for investing in early-stage venture capital undertaking (start-ups).

Angel Funds bridge the gap between start-ups and angel investors, who are instrumental in providing mentoring, and resources to the start-ups. In recognition of the same, IFSCA has now issued a framework for Angel funds under the IFSCA (Fund Management) Regulations, 2022. The salient features of the said framework are as under:

  1. A Fund Management Entity (FME) in IFSC will be able to launch Angel Fund by filing a placement memorandum with the Authority under a Green Channel, i.e. the schemes can open for subscription by investors immediately upon filing the placement memorandum with the Authority.
  2. Angel Funds shall accept investments from accredited investors or investors who are willing to commit at least USD 40,000 over 5 years.
  3. Angel Funds are permitted to invest in start-ups as well as other regulated angel schemes in IFSC, India, foreign jurisdictions upon receiving consent from the desirous investors.
  4. While investment(s) by an Angel Fund in a start-up is capped at USD 1,500,000, the Angel fund is permitted to invest in subsequent rounds of fund raising by the start-up in order to protect its shareholding from dilution, subject to certain conditions.

The detailed framework for Angel Funds may be accessed at https://ifsca.gov.in/Circular

 

Next Post

Uma Priyadarshini S. Vs. Suchith K. Nair (06/01/2022)

Sat Jul 2 , 2022
Hindu Marriage Act, 1955 — S. 24 — Interim maintenance-The issue of maintenance has to be decided afresh by the concerned court/family court in accordance with the law, taking into account all relevant factors including the income of the respective spouses, the number of persons actually dependent on the spouses etc.

You May Like

  • A judge is the pillar of entire justice system and public has a right to demand virtually irreproachable conduct from a judge (SC-10/12/2019) - A person discharging judicial duties acts on behalf of the State in discharge of its sovereign functions. Dispensation of justice is not only an onerous duty but has been considered as akin to discharge of a pious duty, and therefore, is a very serious matter. The standards of probity, conduct, integrity that may be relevant for discharge of duties by a careerist in another job cannot be the same for a judicial officer. A judge holds the office of a public trust. Impeccable integrity, unimpeachable independence with moral values embodied to the core are absolute imperatives which brooks no compromise. A judge is the pillar of the entire justice system and the public has a right to demand virtually irreproachable conduct from anyone performing a judicial function. Judges must strive for the highest standards of integrity in both their professional and personal lives.
  • A daughter has no right u/s 14 of Hindu Succession Act of her father’s property if it is occupied by her brother through adverse possession (SC-28/08/2023) - A Hindu daughter has no right u/s 14 of Hindu Succession Act on the property of her father if it is occupied by her brother through adverse possession (SC-28/08/2023)- [See Pritam Singh v. State, AIR (1950) SC 169: (1950) SCR 453, Hem Raj v. State of Ajmer AIR (1954) SC 462: (1954) SCR 1133, Bengal Chemical & Pharmaceutical Works Ltd. v. Employees, AIR (1959) SC 633: 1959 Supp (2) SCR 136: (1959) 1 LLJ 413, Municipal Board, Pratabgarh and Anr. v. Mahendra Singh Chawla and Ors. (1982) 3 SCC 331: (1983) SCC (L&S) 19, Taherakhatoon (dead) by LRs v. Salambin Mohammad (1999) 2 SCC 635]

Jurisprudence

Recent Updates

%d bloggers like this: