Revised SEBI Framework for Angel Funds: What Startups and Investors Need to Know
On September 10, 2025 , the Securities and Exchange Board of India (SEBI) introduced a revised regulatory framework for Angel Funds under AIF Regulations . This move is designed to provide operational clarity, improve governance, and strengthen investor protection. Here’s a breakdown of the key changes and what they mean for both investors and startups. 🔑 Key Highlights of the New Framework 1. Only Accredited Investors Allowed Going forward, angel funds can raise money only from accredited investors . Existing angel funds have until September 8, 2026 to transition. During this period, they may still accept up to 200 non‑accredited investors . 2. Minimum Investor Requirement at First Close An angel fund must secure at least five accredited investors at the time of its first close . The first close must happen within 12 months of SEBI recording the Private Placement Memorandum (PPM). 3. Angel Funds Get Their Own Category Angel Funds are now recognised as a separate Category I AIF , i...