Sebi eases rules for angel investment in startups

In an attempt to boost early-stage funding in startups, Sebi on Wednesday relaxed norms for angel investors. The regulator has raised the total number of angel investors in a startup to 200 from 49. Sebi has also reduced the minimum investment amount in startups by angel investors to Rs 25 lakh from Rs 50 lakh. Angel investors are financiers who put money in new companies at their formative stages.

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Sebi bars PE funds, promoters from side deals

Cracking down on secret profit sharing agreements between private equity funds and promoters of listed firms, Sebi today barred them from entering into any such pact without prior approval of board and public shareholders.

The restrictions will also apply to employees, including key managerial personnel and directors of listed companies, for themselves and on behalf of any other person, Sebi said after the meeting of its board.

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Euro zone nations turn to hedge funds to meet borrowing needs

Euro zone governments are increasingly relying on hedge funds to help them meet their borrowing needs, which risks leaving them vulnerable to a debt market sell-off driven by a class of investors dubbed “fast money” for their speculative approach.

With banks playing a less active part in the sovereign debt market because of pressures on their balance sheets, several countries have turned to hedge funds to sell their targeted amount of bonds, according to data, officials and bankers.

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Investing in private equity

Raising funds through equity is probably an easier option for any company today. People and institutions who provide money to companies through equity become shareholders/ owners in the company to the extent of their funding.

And when this equity is raised through private sources, i.e. not through stock markets then it is called Private Equity. Private equity is defined as an asset class consisting of equity securities and / or debt in operating companies that are not publicly traded on a stock exchange.

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Sebi mulls allowing Foreign Portfolio Investors to invest in unlisted NCDs

With an aim to deepen capital markets, regulator Sebi is mulling relaxing its norms to permit FPIs to invest in unlisted non-convertible debentures and securitised debt instruments. In a slew of proposed reform measures, the regulator also plans to tighten corporate governance rules on profit-sharing agreements between promoters and private equity funds as part of its efforts to safeguard minority shareholders in markets.

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Keeping your investment portfolio in balance in changing times

The US financial markets are betting that Trump’s policies, greenlighted by a Republican Congress, will boost spending, tilting interest rates and inflation higher. In the inverse math of fixed income investors, higher interest rates mean lower prices on existing bonds, a dynamic professional investors call “rate risk.”

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Sebi considers giving a fillip to startup ecosystem

ooking to provide an impetus to the early-stage startup ecosystem, markets regulator Sebi plans to reduce minimum angel fund investment for venture capital undertakings to Rs 25 lakh from the current Rs 50 lakh.

Sebi may also allow the angel funds to make overseas investments up to 25 per cent of their investible corpus, in line with other Alternative Investment Funds (AIFs).

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Brexit to hit private equity investments in Europe harder

The U.K. vote to leave the European Union has caused widespread delays to fund launches across Europe, but the outlook for the private equity industry overall remains optimistic, according to research released by offshore law firm Mourant Ozannes.

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Investor pressure mounts on hedge funds to adapt as October performance flags

Hedge funds must adapt to investor demands for change in several areas, from fees to product innovation, much faster than they have done before if they want to compete effectively, according to a report by professional services firm, EY.

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SEBI set to tighten promoter-PE fund profit-share norms

SEBI is set to tighten corporate governance rules on profit-sharing agreements between promoters and private equity funds. With a view to align its rules with that of RBI, SEI is considering allowing foreign portfolio investors to buy unlisted non-convertible debentures and securitiesed debt instruments. SEBI will also cut minimum investment requirements for angle funds.

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