The 60 page document is well written , they are aware of the criticism that there is no crowd in crowd funding and raise the question - is it premature to come with a regulation now. My answer is yes. Koreans and Chinese are not rushing with any rule book, they probably want the system to evolve and capture the learning.
First , why crowd funding? We need crowd of retail investors to support startups because we need crowd of early adopters for our innovations.
How to increase the base of investors? Two suggestions:
1. Give a push to investment in startups by large profit making companies under CSR. The law is in place but trickle is yet to begin.
2. Give tax incentives to individual tax payers to support startups by way of donation/ loan/ equity etc within the existing exemption limit.
First , why crowd funding? We need crowd of retail investors to support startups because we need crowd of early adopters for our innovations.
How to increase the base of investors? Two suggestions:
1. Give a push to investment in startups by large profit making companies under CSR. The law is in place but trickle is yet to begin.
2. Give tax incentives to individual tax payers to support startups by way of donation/ loan/ equity etc within the existing exemption limit.
Let us experiment, learn and freeze.
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