Article

SEBI's Stance on Crowdfunding Platforms

Umakanth Varottil, IndiaCorpLaw · indiacorplaw.in Free Intermediate India

A legal analysis of SEBI's 2016 caution, explaining why platforms that open a company's private placement to all their registered investors run against securities and company law.

  • Why an online deal platform open to all its members is treated as a public offer.
  • What it means for angel platforms and founders raising online.
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The question it answers

  1. Which crowdfunding platform should a startup use in India, and is crowdfunding legal here?

Read with it

  1. SEBI's press release of 30 August 2016 warning that electronic platforms raising money for companies from the public are... sebi.gov.in Article SEBI cautions investors (PR No. 137/2016) Securities and Exchange Board of India
  2. SEBI's 2014 consultation paper setting out crowdfunding models (donation, reward, debt, equity) and a possible framework for... sebi.gov.in Article · 66 pages Consultation Paper on Crowdfunding in India Securities and Exchange Board of India
  3. Kickstarter's own eligibility page: creators must meet the requirements of one of its listed countries, which do not include... help.kickstarter.com Article Who can use Kickstarter? Kickstarter
  4. Milaap's own pricing page for donation fundraisers: 0% platform fees, with a relationship manager to help set up a fundraiser. milaap.org Tool Milaap pricing Milaap
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