Capital markets regulator Securities and Exchange Board of India (Sebi) is likely to come out with norms to help start-ups raise capital and bring crowdfunding under a regulatory framework in the next few months.
Sebi, which had formed a committee called Alternate Investment Policy Advisory Committee under N.R. Narayana Murthy for recommending norms to encourage entrepreneurial activities in India, will submit its report in a month, said Sebi chairman U.K. Sinha at the sidelines of a corporate governance summit organized by Confederation of Indian Industries on Tuesday.
The report is likely to include ways to allow crowdfunding in India under Sebi’s norms. Sebi had put out a discussion paper on crowdfunding in June 2014 but the norms have not been formalized yet due to lack of ambiguities in certain clauses of the new Companies Act.
Sinha said though Sebi recently allowed listing of start-ups, many new-age companies are still more comfortable listing themselves abroad due to more attractive tax regimes in some countries.