Last month, the Securities and Exchange Board of India (SEBI) formed a committee to examine angel networks in the country.
The market regulator shot off notices to over a dozen such networks in the past two months, asking them to provide details on their fundraising process and explain whether they operate within the ambit of the Indian market securities law. Because these platforms connect investors with enterprises for raising capital, SEBI’s concern is that they might be operating in a regulatory grey area by acting like stock exchanges that are akin to public markets.
Image: U. K. Sinha, chairman of the Securities and Exchange Board of India, in Mumbai in July 2016. (Photographer: Dhiraj Singh/Bloomberg)
