BANKING AFFAIRS

Detailed explanation-1: -Under the amendment, SEBI will increase the maximum investment by angel funds in venture capital undertakings to ₹10 crore from the current ₹5 crore. However, the minimum investment by an angel investor will continue to be ₹25 lakh.

Detailed explanation-2: -Further, investment in an investee company by an angel fund shall be not less than Rs50 lakhs and more than Rs5 crore and shall be required to be held for a period of at least three years.

Detailed explanation-3: -Like other countries, the concept of venture capital is defined in a broad manner in India under the SEBI Regulations: ‘Venture capital fund’ means a fund established in the form of a trust or a company including a body corporate and registered under these regulations which-i. has a dedicated pool of capital, ii.

Detailed explanation-4: -Angel investors are affluent individuals who invest their own money into startup ventures, whereas venture capital (VC) investors are employed by a risk capital company (where they invest other people’s money).

Detailed explanation-5: -A typical minimum investment in a VC fund varies between $1 to $5 million, but it can be over $25 million.