Private Equity

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Sebi asks angel funds for info on investor rights

Economic Times  

In a communique to angel funds, which have easier rules compared to regular venture capital and private equity funds, the Securities and Exchange Board of India (Sebi) has sought a slew of information from these funds to examine whether investors putting money in these pooled vehicles are getting a fair deal. Sebi has asked them to spell out "in what manner the pro-rata rights of all investors is maintained in all the investments”. The funds have to also share the number of investors in the pool, whether investors can exit before the tenure of the fund expires, the 'commitment period' till when a fund can cut deals to buy into the target startups, the target corpus, and the timelines for initial and final closings of a fund.