Crowd Funding in India: Issues & Challenges

Abstract

Crowd funding, the term itself have a deeper meaning. Crowd funding makes an infant industry grow fast. It provides new investment avenues and provides a new product for portfolio diversification of investors. Crowd funding is a new paradigm for the young individuals to start up a business. The objective of this study has been focused on its issues & challenges, its acceptance in Indian environment & risk involved in the industry itself. The study itself is descriptive in nature. The secondary data have been collected from various research papers, websites & journals. The crowd funding is an application on crowd sourcing. This concept was firstly implemented in the year 2000 and has been growing rapidly all over the world. There are 52 crowd funding platform worldwide. According to SEBI only Accredited investors are allowed to participate in this crowd funding activities. Such investors would include High Net worth individuals. SEBI have emphasized various elements which conceptualized the crowd funding model for INDIA. SEBI have tried to make a balance between investor protection and the role of equity markets in the economic development and growth and to avoid systematic risk being created in the economy.