Sebi may announce angel-fund norms on June 25: Sources

In an exclusive to CNBC-TV18, sources say the Sebi board may announce rules for angel funds on June 25. Some of these rules may include angel fund investment to be limited to Rs 50 lakh- Rs 5 crore; angel funds to be invested in a company for at least three years; angel investors to invest in companies not older than three years; investee company to be unlisted and with a maximum turnover of Rs 25 crore; the investee company may not be related to a group with a revenue of greater than Rs 300 crore.

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Sources add that the Sebi may also stipulate that the fund must not have any family connection with the investee company and that no angel fund scheme may have more than 49 investors.

The 2013-14 Budget promised to prescribe rules for angel funds and Sebi board may empower clearing corporations on June 25.

The Sebi board may also consider rules similar to SARFAESI for the clearing corporations and may mandate these corporations to get first right on collateral for dues, get precedence in cases of insolvency and winding up operations, sources added.