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SEBI has granted approval for Enlighten Angel Fund to function as an Alternative Investment Fund (AIF).

Banking & Finance | Dated: 31 Dec 2024

In December 2024, the Securities and Exchange Board of India (SEBI) approved the Enlighten Angel Fund, a platform that helps early-stage startups in India, to operate as an Alternative Investment Fund (AIF).

🎯 Key Highlights:

  • - The company will focus on investing in early-stage startups in areas like emerging technologies, smart manufacturing, and electric vehicles.
  • - To support India's emerging entrepreneurs, the fund has introduced a Rs. 200 crore Micro Venture Capital (VC) fund, along with a Rs. 100 crore greenshoe option (an option to increase the fund size if needed).
  • - The greenshoe option, also known as the over-allotment option, allows underwriters in an Initial Public Offering (IPO) to buy and sell up to 15% more shares than initially planned.

💡 Other Important Facts:

  • (i) Enlighten Capital Micro VC (formerly Enlighten Angel Fund) has facilitated over 10 startup investments in the past two years, focusing on early-stage startups in emerging technologies, smart manufacturing, and the electric vehicle sector. The fund is led by Koushik Shekar and Arvind Subramaniam.
  • (ii) Alternative Investment Fund (AIF) is a privately pooled investment vehicle designed to meet the needs of High-Net-Worth Individuals (HNIs) and invest in alternative asset classes. AIFs comply with SEBI regulations and can be structured as companies, LLPs, trusts, or other forms.
  • (iii) AIFs are open to resident Indians, NRIs, and foreign nationals. The minimum investment is Rs. 1 crore, with a minimum lock-in period of three years. Each scheme can have up to 1,000 investors, with angel funds limited to 49 investors.

📚 Test Your Knowledge:

Recently, which fund has been granted approval by SEBI to function as an Alternative Investment Fund (AIF)?

Correct Answer: Enlighten Angel Fund

🚀 Quick Recap:

About SEBI

  • Chairperson : Madhabi Puri Buch
  • Headquarter : Mumbai