"Angel fund shall only raise funds by way of issue of units to angel investor". Comment and mention the investment by an Angel fund.

Angel funds shall only raise funds by way of issue of units to angel investors. An angel fund shall have a corpus of at least five crore rupees. Angel funds shall accept, up to a maximum period of five years, an investment of not less than twenty five lakh rupees from an angel investor. Angel fund shall raise funds through private placement by issue of information memorandum or placement memorandum, by whatever name called. However, the provisions of the Companies Act, 2013 shall apply to the Angel Fund, if it is formed as a company. Investment by Angel Funds Angel funds shall invest in venture capital undertakings which: Complies with the criteria regarding the age of the venture capital undertaking/ start-up issued by the Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry and such other Policy made in this regard which may be in force. have a turnover of less than twenty five crore rupees; are not promoted or sponsored by or related to an industrial group whose group turnover exceeds three hundred crore rupees; and are not companies with family connection with any of the angel investors who are investing in the company. Investment by an angel fund in any venture capital undertaking shall not be less than twenty five lakh rupees and shall not exceed ten crores rupees. Investment by an angel fund in the venture capital undertaking shall be locked-in for a period of one year. Angel fund shall not invest in associates. Angel funds shall not invest more than twenty-five per cent of the total investments under all its schemes in one venture capital undertaking. An angel fund may also invest in the securities of companies incorporated outside India subject to such conditions or guidelines that may be stipulated or issued by the RBI and SEBI from time to time.