Last week, Season 2 of one of the country’s most popular reality TV shows, Shark Tank India, came to an end. The show has given rise to a significant demand for startup investing.
Investors are able to put in as little as Rs 5000 via online fundraising platforms like Tyke Invest and Infubiz. They offer investments in startups through Community Subscription Offer Plans.
But these fundraising campaigns are not subject to securities laws and investors in these instruments do not have any shareholder rights under the Companies Act, 2013.
This is creating a high-risk environment for small-time retail investors.
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