Are online funding platforms for start-ups breaking the law?
It's probably in the larger interest of these platforms, and the start-up market, for them to not continue to operate in what is obviously a very grey regulatory area
Markets watchdog Securities and Exchange Board of India (Sebi) is miffed with online platforms that enable start-ups to raise equity capital from investors. In a notice issued on 30 August, the regulator has not only made it clear, but also has cautioned investors that it deems such platforms to be in violation of existing laws that govern the domestic securities market.
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