This step will enable more wealthy investors to participate, raising funds for startups. It ensures that only economically strong investors take high -risk investments, helping Angel funds to raise more capital and support early -stage companies.
Angel funds, a kind of adventure capital funds, collect money from investors to support startups.
The regulator seeks response to the inclusion of recognized investors, especially to offer investment opportunities and allocate investments through Angel Funds, to improve the definition of QIB.
In addition, SEBI has proposed the removal of the 200-investist cap for Angel Funds.
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