Crowdfunding Platforms in India may be Illegal
Regulators in India have questioned the legality of equity crowdfunding platforms. The Securities and Exchange Board (SEBI) in India sent out a warning to investors to let them know prominent platforms like Letsventure, Tracxn, Grex, Termsheet, Equity Crest are not authorized under currents securities law. SEBI regulations only allow recognised stock exchanges to provide electronic platforms to trade and list securities. Platforms contend it is the SEBI’s fault their status is unclear, and SEBI should provide guidelines so crowdfunding platforms can coexist with stock exchanges.