Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

Regulations for Online Investing in India Might Be Close

12/21/2015

 
Picture
In 2014, India’s financial markets authority (SEBI) published a draft of regulations to allow online investing in the country and put them up for public comments. No action has been taken since then. However, according to official sources, the game may soon change.

The Securities and Exchange Board of India (SEBI) released in 2014 a draft proposal of rules for the local online investing market, which limited the amount of capital that could be raised by a single issuer to Rs 100 million ($ 1,662,220) per year and distinguished between accredited investors and retail investors, putting a cap on investment for the latter at Rs 16,000 ($ 275) per offer.

The proposal was then subject to a public consultation and many local stakeholders provided their insights and points of view. Nevertheless, the rule making process was put on hold, mainly because there were still some open issues on how to handle cross-border investments and because the Indian financial authority preferred to see some more cases of how other countries regulated the growing sector of digital investing.

According to several sources, it seems that the situation may change soon. SEBI, which formed an internal committee to write a report  for recommending norms to encourage entrepreneurial activities in India - including crowdfunding, will probably submit it within one month. After this milestone has been achieved, SEBI will start dealing with implementation.

Indian online investing platforms are currently operating in a regulatory grey area and there are no clear guidelines on how  to tackle the risks such as money-laundering and other fraudulent acts associated with digital finance. Hopefully SEBI’s announced actions will shed some light on these topics.


References
Laskar,A. (2015).Sebi likely to bring crowdfunding under regulatory framework.Livemint
Upadhiay, J.P. (2015).Sebi puts crowd funding regulations on the back burner. Business Standard
Sinha, U.K. (2015). Sebi to soon come out with crowd-funding norms. The Economic Times
Photo credit to: Zadeus 

Picture
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 and she works also for the European Crowdfunding Network.




Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.