Amith Sriram K S, Assistant Professor, Bengaluru
ABSTRACT
In the unique stream of looking for investment, Crowdfunding has arisen as a deliberate method of looking for interest in India. It is a helpful way by which individuals can bring capital flawlessly and up in a proficient way utilizing a web based stage. Security and Exchange Board of India (SEBI) has delivered a meeting paper in 2014 and characterized crowd financing 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.” Crowdfunding in developing nations brought US$430 million up in 2015, with India, the Philippines, and Nepal.This kind of information proposes that, there is an expanded mindfulness in the crowd about raising capital from non-customary sources when the entirety of the regular sources, demonetisation and presentation of Goods and Services Tax Act (GST) has neglected to address the worries of sprouting business visionaries and have stunned their impending endeavour. However the development of Fin-tech in India appears to change the gears of new business and is continually having an effect in an individual's life; it has its own interests. Perceiving the approach at which these group financing activities filled in India, the Government made a few strides in controlling crowd funding business in India. SEBI did as such by joining guidelines on Reward Based Crowd funding and Donation Based Crowd funding, however it is generally quiet on the guidelines of equity based crowd funding and online based Crowd funding. This paper expects to extensively get what Crowdfunding is and how it is controlled in India. The paper focuses on the idea of equity based crowd funding to answer on the chance that if it can be directed inside the current administrative system for example under Companies law, protections laws and different guidelines for private supporters or it requires separate administrative edge work. This paper analyses whether there is a need to adopt regulatory frame work of developed countries like USA where there is a sound structure for crowd funding.
