Mumbai | 25 May, 2019 (8 months, 1 week ago)

Startup Funding and Finances

CAN I RUN CAMPAIGN OF CROWD FUNDING PRIVATELY FOR MY OWNED SOLAR COMPANY?

HELLO SIR/MADAM I JUST WANTED TO KNOW, WHAT ARE THE LEGAL IMPLICATIONS FOR RUNNING CROWD FUNDING PRIVATELY? I HAVE REGISTERED MY COMPANY THAT IS "PHOTON SOLAR POWER GENERATION FARMER PRODUCER COMPANY LIMITED " I WANT TO RAISE FUND FOR PROPOSED 1MW SOLAR PARK FOR GENERATION OF ELECTRICITY. I AM THINKING TO RAISE FUND UNDER REWARD BASED CROWD FUNDING. AS AFTER CALCULATION I AM WILLING TO GIVE DISCOUNT IN CUSTOMER ELECTRICITY BILLS IF THEY INVEST ONLY 1 RUPEE IN IN MY POLLUTION FREE SOLAR PARK. WAITING FOR REPLY, THANK YOU.
Answers
04 Jun, 2019 | 18:17

In so far as legal implications are concerned , only donation and reward based crowdfunding is legal. Equity crowdfunding is illegal.


Dear Sir,
You cannot raise funds like that it is violation of RBI directors unless you comply various other conditions before you go for public issue by becoming member of a stock exchange.


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