SEBI mulls norms on crowd-funding for MSMEs

Market regulator, Securities and Exchange Board of India (SEBI) is preparing regulations for crowd-funding for small businesses that will help start ups raise funds.SEBI Wholetime Member, Rajeev Agarwal Wednesday said, "it was evolving guidelines in consultation with government for funding arrangements for star up entrepreneurs." He was addressing a Seminar on "Energizing SME Exchange, ITP and Dissemination Board Platforms" under aegis of PHD Chamber of Commerce and Industry in New Delhi on Wednesday. However, Agarwal elaborated that the finance minister made allocation to the extend of Rs.10,000 crores to extend funding facilities for SMEs and other splinter groups such as emerging start ups in the budget for 2014-15 which has yet to be utilized for the desired purpose."The government and SEBI are making guidelines for the utilization of this fund, especially for start up entrepreneurs as it is they, who would emerge and evolve into macro economic and financial entities in near future so that based on them, the funding facilities are extended to strengthen their base," said Agarwal.


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