In consultation with MCA, Sebi makes headway in framing crowd-funding norms

Mandatory registration, KYC requirement for investors and exemption from private placement norms to be key features of the framework

The Securities and Exchange Board of India (Sebi) is finalising the regulatory framework for crowd-funding in consultation with the corporate affairs ministry.
 
Sources said the regulator was in talks with the government to amend several provisions of the Sebi Act and the Companies Act, 2013, including private placement norms.
 
According to legal expers, the crowd-funding regulations needed Sebi to step in to the unlisted space, and hence would require tweaking of the Sebi Act.
 
Crowd-funding is a platform, usually an internet portal or a social media group, that can be used by companies to raise capital from