Loan-Based Crowdfunding Regulation
Licensing & Regulating Loan-Based Crowdfunding Activities
Part A - General Provisions
Article 1 - Short Title & Commencement
The instructions set forth herein are titled the "Loan-Based Crowdfunding Regulation" for 2023 and shall enter into force as of 08/10/2023.
Article 2 - Definitions
For the purpose of this regulation, the following terms are defined as follows, unless the context otherwise suggests:
S.No. | Term | Explanation |
1 | Accredited Investor | Investors that are financially sophisticated maintain a certain level of net worth or annual income, and that are ascertained to have the ability to make sound financial investments, with an awareness of the risks associated with undertaking such financial investments. |
2 | Business Finance | Any credit or funding which an Investor provides to a business or Borrower on agreed terms to finance a specific project or any other business purposes. |
3 | Borrower | An entity that has borrowed or is seeking to borrow funds from Investors, facilitated by a Loan-Based Crowdfunding Platform. |
4 | Campaign (Also referred to as a Crowdfunding Campaign) |