EQUITY CROWDFUNDING IN INDIA: TOWARDS A REGULATORY FRAMEWORK
Crowdfunding has emerged in recent times as an alternative means of raising capital for entrepreneurial ventures and small businesses trying to carve out a space in the market. Crowdfunding is increasingly gaining popularity in India and has been used for projects and campaigns such as Teach for India and the Goa Project. Several filmmakers have also relied on raising funds through crowdfunding. The Securities and Exchange Board of India (SEBI) released a Consultation Paper on Crowd Funding in July, 2014 (hereinafter “Consultation Paper”), where it defined crowdfunding as a ‘solicitation of funds from multiple Accredited Investors through a web-based platform or social networking site for a project, business venture or social cause’.