The Securities and Exchange Board of India (SEBI), which regulates market capital in India, has relaxed norms for Angel funding in the country. The SEBI has reportedly raised the total number of angel investors allowed to invest in a venture to 200 from 49 and reduced the minimum investment amount to $36K from the previous limit of $76K. In addition to this, angel investors will be now permitted to invest 25% of their funds in overseas startups. Investors will now be allowed to invest in startups that were incorporated five years prior to the date of the investment, via their angel funds. This is an extension from the previous limit of three years. The regulatory authority has also reduced the lock-in period to one from three years. Under the revised norms, companies owned by private equity (PE) firms will now have to seek shareholder’s approval before entering into performance-based compensation agreements with executives.

(Inc42)