IFSCA issues framework for angel funds

New Delhi: The International Financial Services Centres Authority (IFSCA) has issued a framework for angel funds under the IFSCA (Fund Management) Regulations, 2022, an official statement said on Friday.
Under the framework, 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 which means the schemes can open for subscription by investors immediately upon filing the placement memorandum with the authority.
Angel Funds will accept investments from accredited investors or investors who are willing to commit at least USD 40,000 over 5 years.
Angel Funds will be 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.
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 statement said.
The IFSCA had notified the IFSCA (Fund Management) Regulations 2022 in April enabling the regulatory framework for various activities related to fund management including schemes for investing in early-stage venture capital undertakings (start-ups). (UNI)

#Start-up India, #Angel Funding