Looking to provide an impetus to the early-stage startup ecosystem, markets regulator Sebi plans to increase the maximum investment by angel funds in venture capital undertakings to Rs 10 crore from the current Rs 5 crore. In this ecosystem, wherein angels are investing much higher amounts, such increase is needed to provide more opportunities to angel funds, regulatory officials said. However, the minimum investment by an angel investor will continue to be Rs 25 lakh. Further, Sebi plans to halve the minimum corpus size required for an angel fund to register with it to Rs 5 crore. The regulator is considering to raise the maximum period of accepting funds from an angel investor to five years from the present limit of three years, they added. The move will provide angel funds more time to identify opportunities and invest in venture capital firms. The issue will be discussed at the board meeting of the Securities and Exchange Board of India (Sebi) this week.
