SEBI asks crowdfunding platforms to issue disclaimer
According to reports, angel investor networks and start-up funding platforms are now required to notify every firm and investor via disclaimer that their platforms are not stock exchanges and they don't have SEBI's authorization to solicit investments. They'll also have to mention that the securities, which get traded on their platforms, are not traded on any of the regulated bourses. Here's more.
What is it all about?
This SEBI directive has been given due to the unprecedented rise of crowdfunding activity in the start-up space and the absence of a proper governing law to keep a tab on them. LetsVenture CEO Shanti Mohan believes this move will bring about more clarity on the legalities of start-up funding and will make potential investors more confident.
Taking care of the gray areas
LetsVenture CEO Shanti Mohan said, "We feel SEBI's move will only help entities like us to serve better by boosting the investors' confidence and removing some of the gray areas in the legality of start-up funding."
