SEBI has granted approval for Enlighten Angel Fund to function as an Alternative Investment Fund (AIF).
Banking & Finance
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).
- 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.
Main Point :- (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.
About SEBI
Chairperson : Madhabi Puri Buch
Headquarter : Mumbai
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