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SEBI Circular on "Filing of Term Sheet by Angel Funds"

SEBI Circular No. CIR/IMD/DF1/102/2018 dated June 29, 2018 addressed to all Registered Alternative Investment Funds, reads as follows:

1. In order to provide ease of doing business to Angel Funds, SEBI had formed a working group to study SEBI (Alternative Investment Funds) Regulations, 2012 (hereinafter referred to as 'AIF regulations') and suggest changes required, if any. Based on the recommendations of the working group, SEBI has amended the AIF Regulations vide notification dated June 1, 2018 (copy of the notification enclosed as Annexure I), simplifying certain regulatory provisions regarding the Angel Fund including Regulation 19(E) which deals with filing of scheme details with SEBI.

2. Pursuant to the aforesaid amendment of AIF regulations, it is specified that:

 2.1 angel funds may now launch schemes subject to filing of a Term Sheet in the format as specified in Annexure II;
 2.2 such Term Sheet shall contain material information regarding the scheme; and
 2.3 such Term Sheet shall be filed with the Board within ten days of launching the scheme.

3. This circular is issued in exercise of powers conferred by sub-section (1) of section 11 and section 11A of the Securities and Exchange Board of India Act, 1992 read with the provisions of the AIF regulations, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. The provisions of this circular shall be applicable with immediate effect.

4. This Circular is available on SEBI website under the categories "Legal Framework-Circulars" and "Info for - Alternative Investment Funds".




Annexure I

Annexure II
Term Sheet

A - Investment and Investee Company Related Information
SEBI Circular on "Filing of Term Sheet by Angel Funds"

B - Compliance with SEBI (Alternative Investment Fund) Regulations
SEBI Circular on "Filing of Term Sheet by Angel Funds"

C - Material changes
Angel Fund shall submit details of Material changes from the last PPM/Term Sheet in the following tabular format:
SEBI Circular on "Filing of Term Sheet by Angel Funds"

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