The Securities and Exchange Board of India (SEBI), which regulates market capital in India, has relaxed norms for angel funding in the country. As per an official statement, the move is aimed towards boosting investments in startups.\r\n\r\nThe SEBI has reportedly raised the total number of angel investors allowed to invest in a venture to 200 from 49 and reduced the minimum investment amount to $36K from the previous limit of $76K.\r\n\r\nIn addition to this, angel investors will be now permitted to invest 25% of their funds in overseas startups, as per a statement issued by SEBI. Investors will now be allowed to invest in startups that were incorporated five years prior to the date of the investment, via their angel funds.\r\n\r\nThis is an extension from the previous limit of three years. The regulatory authority has also reduced the lock-in period to one from three years.\r\n\r\nCommenting on the development, Sandeep Aggarwal, angel investor told Inc42, \u201cThis is an excellent move and will make capital easier accessible and will increase liquidity in the market. Besides,\u00a0the upper limit going to 200 means startups have long way to go before they run out on the number of angels. And angels investing in overseas venture funds means, more global exposure to Indian investors. This could not have come at a better time and is wholeheartedly welcomed.\u201d\r\n\r\nUnder the revised norms, companies owned by private equity (PE) firms will now have to seek shareholder\u2019s approval before entering into performance-based compensation agreements with executives.\r\n\r\nIn 2014, the SEBI released a consultation paper that proposed legal, structural and regulatory framework around crowdfunding in India. In January 2015, the SEBI held talks with the government to evolve guidelines on crowdfunding in a move to help startups raise funds.\r\n\r\nFollowing that, in June 2016, it reworked its plans for capital-raising platforms targeted exclusively at startups. The regulatory body has considered changes to the listing framework for tech-based startups allowed them to trade publicly on regular stock exchanges.\r\n\r\nIn September 2016, it issued an investor warning notice to equity crowdfunding platforms that aid startups. The notice questioned the legality of these platforms.\r\n\r\nThe development was reported by Reuters India.