- Investors: any adult resident can invest up to $5,000 per offering and they have the right to cancel their investment until 48 hours prior to the deadline
- Issuers: the companies selling securities to Indiana residents through online portals can raise up to $2 million. These businesses shall be registered with the State and their offering has to be open for investments at least twenty one days. They also need to comply with disclosure requirements, providing information and materials to the investors, such as the purpose(s) for which it they intend to use the proceedings.
- Platforms: online investment portals shall register with Indiana Securities Division paying a registration fee of $100. The regulation also requires that the platforms keep a surety bond of minimum $50,000. The bond shall be in favor of the state and shall secure payment of costs, fines and damages to any person determined by the commissioner to be aggrieved by an Internet web site operator's violation. The portal operator shall be a US resident or alternatively a non resident which is approved as portal member by the Financial Industry Regulatory Authority (FINRA). All these specifications are also valid for registered broker-dealers or investment advisors, with the exception of $100 registration fee which is waived in this case.
If you are looking to start you own digital investing portal in Indiana or any other US state, get in touch with our team to discover how Crowd Valley can help you.
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.