Crowdfunding norms to be in place in a month: Sebi’s U K Sinha

Mumbai(PTI): Capital markets regulator Securities and Exchange Board of India (Sebi) will put in place norms to help entrepreneurs raise funds through ‘crowdfunding’, while discussions are also underway to allow sale of mutual funds through e-commerce platforms, Chairman U K Sinha said on Tuesday. the norms are likely to be in place in about a month, Sinha said.

U K Sinha

Sebi has constituted a committee, headed by Infosys co-founder N R Narayana Murthy to to suggest ways for raising of funds through crowdfunding.

“The committee is still deliberating on crowdfunding. They had made sub-committees, which have submitted the report to the main committee,” Sinha told reporters on the sidelines of an industry event on corporate governance.

“The committee is very active and sincere about it, and I am sure in a month from now, we will get the final report and then we will come to the area of implementation,” he added.

The markets regulator had earlier come out with a discussion paper for crowdfunding norms to help young entrepreneurs and small groups of people raise funds.

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Crowdfunding typically involves young entrepreneurs and small groups of people raising funds for their ventures through various online platforms involving individuals and organisations.