Chapter III-A · Angel Funds
Regulation 19G
Obligations of Sponsors and Managers of Angel Fund
Chapter III-A · Angel Funds
SEBI (Alternative Investment Funds) Regulations, 2012
In plain English
In plain English
The manager or sponsor must keep a continuing interest in each investment of the angel fund of at least 0.5% of the amount invested or ₹50,000, whichever is higher, and not through waiving management fees. The manager takes an angel investor's money for a deal only after that investor approves the deal, offers every opportunity to all angel investors, discloses its allocation method in the placement memorandum and allocates contributions in line with that method.
Where this sits
Regulation 19G is in Chapter III-A — Angel Funds of the SEBI (Alternative Investment Funds) Regulations, 2012.
Provisos, explanations and conditions
This regulation has no provisos or explanations in its text. Check Connections for other provisions it refers to.
What changed
No change to this regulation by the 2026 amendments (No. 303 of 16 April 2026 and No. 313 of 10 July 2026).
Words in square brackets in the official text mark earlier amendments made before 2026. Their earlier wording is not shown because it has not been verified here.
Where it connects
The text of this regulation does not refer to other numbered regulations.
Related Master Circular chapters (by subject)
Chapter
Check yourself
2 practice questions on Regulation 19G, each with an explanation for every option.
- An angel fund invests ₹80 lakh in a start-up. What is the minimum continuing interest of the manager or sponsor in that investment?
- True or false: an angel fund manager may take an angel investor's money for a deal only after that investor approves the deal, and must offer each opportunity to all angel investors.
The regulation
19G.[***] [(1)] The manager or sponsor shall have a continuing interest in[each investment of] the angel fund of not less than[half percent of the amount invested or fifty thousand rupees, whichever is higher,] and such interest shall not be through the waiver of management fees. [(2)][The manager shall accept contribution from an angel investor for investing in an investee company only after obtaining approval from the angel investor for such investment.] [(3) The manager shall disclose and offer each investment opportunity to all the angel investors of the angel fund.
(4) The manager shall disclose a defined methodology in the placement memorandum of the angel fund, for the purpose of allocating the investment among angel investors who provide approval for such investment, in the manner as may be specified by the Board from time to time.
(5) The manager shall accept contributions for investment in an investee company from the angel investors who provide approval for the investment, in accordance with the methodology disclosed in the placement memorandum of the angel fund.
(6) The investors of an angel fund shall have rights in an investment of the angel fund and in the distribution of proceeds of the investment, pro-rata to their contribution to such investment, except in the cases as may be specified by the Board from time to time.
(7) In case an angel fund offers an opportunity for investment in an existing investee company or related party of an existing investee company, the same shall be disclosed to the angel investors at the time of seeking their approval for making such investment.]
Text from the consolidated Regulations. Square brackets and [***] mark earlier amendments and omissions, as in the official text. Check the official Gazette text before relying on it.
Last checked against source on 10 October 2026: consolidated Regulations to 19 November 2025, read with Amendment Regulations No. 303 (16 April 2026) and No. 313 (10 July 2026).
Source and verification
- Instrument
- SEBI (Alternative Investment Funds) Regulations, 2012 — Regulation 19G
- Text used
- Consolidated Regulations as amended up to 19 November 2025, read with the 2026 amendments (no change to this regulation)
- Last checked
- 10 October 2026
- Official source
- www.sebi.gov.in → Legal → Regulations. The Gazette text prevails.
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