SEBI Mandate for Accredited Investors in Angel Funds: A Shift for India's Early-Stage Ecosystem

𝗔𝗰𝗰𝗿𝗲𝗱𝗶𝘁𝗲𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: 𝗔 𝗽𝗶𝘃𝗼𝘁𝗮𝗹 𝘀𝗵𝗶𝗳𝘁 𝗳𝗼𝗿 𝗜𝗻𝗱𝗶𝗮’𝘀 𝗲𝗮𝗿𝗹𝘆-𝘀𝘁𝗮𝗴𝗲 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺 The Securities and Exchange Board of India (SEBI)’s recent mandate — requiring angel funds to onboard only accredited investors — marks a significant regulatory milestone aimed at strengthening investor protection and ensuring that those participating in high-risk early-stage investments have the necessary risk appetite and financial maturity. In a recent feature by 𝘝𝘊𝘊𝘪𝘳𝘤𝘭𝘦, Indian Venture and Alternate Capital Association (IVCA) shared its perspective on the evolving landscape and the road ahead for angel funds navigating this transition. While the new framework addresses long-standing concerns around eligibility, KYC, and regulatory oversight, it also highlights key areas that require continued focus — including simplifying the accreditation process, expanding the number of accreditation agencies, and incentivising accredited investor–only products to encourage wider participation. 👉 𝗥𝗲𝗮𝗱 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝗵𝗲𝗿𝗲: https://lnkd.in/gBk83Een Rajat Tandon Rahul Shah Rohan P. Paromita Sinha #IVCA #VentureCapital #AngelFunds #AccreditedInvestors #AIF #StartupEcosystem #Regulation #IndiaStartups