Raising funds is an essential part of any business, whether it
is a start-up or an established enterprise. In India, there are a
number of different ways to raise funds, each with its own
regulatory framework and legal compliance requirements. This
article attempts to explore the key aspects of fundraising in India
and shed light on the relevant laws, schemes, and regulations
governing the process.
Overview of Securities Laws and Regulations
Fundraising activities involving the issuance of securities,
such as equity shares, convertible notes, Simple Agreement for
Future Equity (SAFE) or other instruments, are
governed by the Securities and Exchange Board of India
(SEBI).
Compliance with the Securities and Exchange Board of India Act,
1992; the Reserve Bank of India Act, 1934; the Securities Contracts
(Regulation) Act, 1956; the Prevention of Money Laundering Act,
2002; and the Companies Act, 2013 is essential for public and
private offerings. These Acts, their
