Home General Knowledge GK SPECIAL TOPIC : CROWD-FUNDING
GK SPECIAL TOPIC : CROWD-FUNDING
Tuesday, 08 July 2014 03:39


 


CROWD-FUNDING

Crowd-funding is collection of funds from multiple investors, who may number in the hundreds or thousands, through a web-based platform or social networking site for a specific project, business venture or social cause.

According to IOSCO (International Organisation of Securities Commissions) Staff Working Paper - Crowd-funding: An Infant Industry Growing Fast, 2014 ( IOSCO Paper ), Crowd-funding can be divided into four categories: donation crowd-funding, reward crowd-funding, peer-to-peer lending and equity crowd-funding.

Crowd-funding is an emerging and an innovative way of raising funds from people through Internet, but lack of regulations for such activities has given rise to concerns of possible defrauding of investors.

In US and UK there are dedicated websites for crowd-funding but in India it is an emerging concecept. Taking cue from financial market regulators in the US and the UK, the Securities and Exchange Board of India (SEBI) recently floated a 66-page  consultation paper on crowd-funding in India , wherein it has proposed a new set of guidelines to regulate such activities.



 




Last Updated on Tuesday, 08 July 2014 03:55