Section 19G in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
19G. Obligations of Sponsors and Managers of Angel Fund.
(1)The sponsor shall ensure that the angel investors satisfy the conditions specified in sub-regulation (2) of regulation 19A.(2)The manager or sponsor shall have a continuing interest in the angel fund of not less than two and half percent of the corpus or fifty lakh rupees, whichever is lesser, and such interest shall not be through the waiver of management fees.(3)The manager of the angel fund shall obtain an undertaking from every angel investor proposing to make investment in a venture capital undertaking, confirming his approval for such an investment, prior to making such an investment.
