Securities And Exchange Board Of India - Subsection
Section 19F(1) in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
(1)Angel funds shall invest [***] [The word 'only' was omitted by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017.] in venture capital undertakings which:(a)[complies with the criteria regarding the age of the venture capital undertaking/startup issued by the Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry, Government of India vide notification no. G.S.R. 180(E) dated February 17, 2016 or such other policy made in this regard which may be in force;] [Substituted for the words 'have been incorporated during the preceding three years from the date of such investment;' by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017.](b)have a turnover of less than twenty five crore rupees;(c)are not promoted or sponsored by or related to an industrial group whose group turnover exceeds three hundred crore rupees; andExplanation I: For the purpose of this clause, "industrial group" shall include a group of body corporates with the same promoter(s)/promoter group, a parent company and its subsidiaries, a group of body corporates in which the same person/ group of persons exercise control, and a group of body corporates comprised of associates/subsidiaries/holding companies.Explanation II: For the purpose of this clause, "group turnover" shall mean combined total revenue of the industrial group.(d)are not companies with family connection with any of the angel investors who are investing in the company.
