Sebi, as part of the crowdfunding norms, also seeks relax disclosure norms so that information is shared only with investors and not the public at large. Photo: Aniruddha Chowdhury/MintMumbai: Three years after first examining how it can regulate crowdfunding, the Securities and Exchange Board of India (Sebi) is closer to finalizing norms for this funding channel, said two people aware of the development. However, while current crowdfunding platforms mostly solicit investments digitally through websites, the number of investors may often cross 200 inadvertently. In August last year, Sebi had questioned the legitimacy of equity crowdfunding platforms serving start-ups in an investor-caution note. The existing crowdfunding platforms can continue to operate and once Sebi norms are in place, the disclosures with regards to the company’s business, the profile of investors, and the shareholding pattern will be minimal, while the access to the crowdfunding platforms may be protected by a password, said the second person cited earlier.

Source: Mint August 13, 2017 21:33 UTC