New Delhi: The Securities and Exchange Board of India (SEBI) on Wednesday ruled out regulations for crowd funding as of now but added, “it was evolving guidelines in consultation with government for funding arrangements for star up entrepreneurs”.
Wholetime Member of SEBI, Rajeev Agarwal revealed this at a Seminar on “Energizing SME Exchange, ITP and Dissemination Board Platforms under aegis of PHD Chamber of Commerce and Industry, pointing out that crowd funding issue was discussed by the international board of SEBI in detailed and concluded that the subject has not even been debated in great details in advance economy such as US and Europe and that India should wait for some time on it before contemplating regulations and directives on the matter.
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.
He reiterated the commitment of SEBI that it would continue to protect the retail investors and promote trading in SMEs exchanges within the existing guidelines but expressed inabilities of the SEBI to further broad base policy measures for regulation of SMEs exchanges as the presently prescribed guidelines are sufficient to do justice for their regulation.