With reference to the SEBI capital market reforms approved at its 210th board meeting, consider the following statements:
1. Equity shares arising from the conversion of Compulsorily Convertible Securities (CCS) are now eligible for Offer for Sale (OFS) exemptions.
2. The minimum investment limit for Angel Funds has been increased to ₹50 lakh to limit risk exposure.
Which of the statements given above is/are correct?

Question

Accepted Answer

1 only — Statement 1 is correct as SEBI has allowed equity shares from CCS to participate in OFS, aiding reverse-flipping startups. Statement 2 is incorrect because the minimum investment limit for Angel Funds was actually reduced to ₹10 lakh (down from ₹25 lakh) to broaden investor participation.

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