Investment by Angel Funds :

Angel funds shall invest only in venture capital undertakings which:

(a) have been incorporated during the preceding three years from the date of such investment;

(b) have a turnover of less than twenty five crore rupees;

(c) are not promoted or sponsored by or related to an industrial group whose group turnover exceeds three hundred crore rupees; and

Explanation I: For the purpose of this clause, “industrial group” shall include a group of body corporates with the same promoter(s)/promoter group, a parent company and its subsidiaries, a group of body corporates in which the same person/ group of persons exercise control, and a group of body corporates comprised of associates/subsidiaries/holding companies.

Explanation II: For the purpose of this clause, “group turnover” shall mean combined total revenue of the industrial group.

(d) are not companies with family connection with any of the angel investors who are investing in the company.

(e) Investment by an angel fund in any venture capital undertaking shall not be less than fifty lakh rupees and shall not exceed five crore rupees.

(f) Investment by an angel fund in the venture capital undertaking shall be locked-in for a period of three years.

(g) Angel funds shall not invest in associates.

(h) Angel funds shall not invest more than twenty-five per cent of the total investments under all its schemes in one venture capital undertaking: