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)