Sebi's relaxed norms for angel funds may not spur investments

However, angel funds can work for passive investors

The new norms for angel funds may not spur new funds as investors find it more efficient to invest through private syndicates like angel networks, say angel investors and venture capitalists.

The Securities and Exchange Board of India (Sebi) had relaxed norms for angel funds, lowering the minimum corpus needed for an angel fund from Rs 100 million to Rs 50 million, raising the threshold of investments in a start-up from Rs 50 million to Rs 100 million, among other changes.

‘'This is a good move to liberalise the scheme. Until now, very few funds were designated as angel funds