The market regulator’s move, in effect, bans ‘blind pooling of capital’
SEBI also clarified that there were no provisions in the AIF Regulations that provided for a waiver of investors’ right
LetsVenture had reached out to Sebi in November last year, seeking the clarification
The Securities and Exchange Board of India (SEBI) in a letter to LetsVenture on September 17 has clarified the regulatory note issued last year, that the fund manager of an angel fund must take the consent from every investor in the fund syndicate prior to making an investment.
The market regulator’s move, in effect, bans ‘blind pooling of capital’. For the uninitiated, a blind pool is a direct participation program or limited partnership that lacks a stated investment goal for funds that are raised from investors.
In a blind pool, money is raised from investors, usually based on the name…