Crowd funding will become easier for Indian entrepreneurs as capital markets regulator Sebi will be coming out with guidelines shortly.
U K Sinha, chairman of the Securities and Exchange Board of India (Sebi) said the committee constituted by the regulator and headed by Infosys co-founder N R Narayana Murthy for the purpose will submit its report in a month.
"The committee is still deliberating on crowd funding. They had made subâ€”committees, which have submitted the report to the main committee," Sinha told reporters in Mumbai on Tuesday, reports PTI.
Besides, Sinha said that Sebi is also on job to enable mutual funds (MFs) to sell their schemes on e-commerce platforms for which it has set up a panel under Nandan Nilakeni, Infosys co-founder and former chief of UIDAI.
Crowd funding is a concept wherein projects are funded by pooling in money raised from a large number of people. When norms are in place, it will be easier and systematic for entrepreneurs to raise funds.
Staying with MFs, after witnessing a fresh inflow of Rs 1.35 lakh crore in October, funds saw investors pulling out Rs 31,000 crore in November, a month that also saw FIIs turn net sellers for most part.
The Association of Mutual Funds in India said that investors redeemed units worth Rs 31,196 crore in November, reported PTI.