Sources said the concept had been discussed extensively with all regulators, including Sebi. However, Sebi expressed its reservations about regulating crowdfunding, citing jurisdiction issues, said a person privy to the development. Though, in 2014, it had floated a discussion paper and proposed a framework to enable domestic start-ups and small and medium enterprises to raise capital from multiple investors through crowdfunding.
It had defined crowdfunding as “solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project, business venture, or social cause”. However, it had scrapped the idea, citing ambiguity and lack of clarity on cross-border investments.
Grex, Kickstarter, Indiegogo, Ketto, LetsVenture, Milaap, Wishberry, Fueladream, BitGiving, Catapooolt, DreamWallets, Start51 and Fundlines are among the active crowdfunding platforms in the country catering to various kinds of projects. The exact amount mobilised by these players is not known. However, these platforms claim to have empanelled hundreds of investors and start-ups.