Sebi Tightens Angel Investor Rules, Potentially Slowing Startup Funding

Imagine startups are like baby companies needing money.

Now, the people giving this money, called angel investors, have new rules.

To give money, they need to prove they understand the risks and have enough money themselves.

This means some angel investors need to get 'accredited' first.

This may slow down the flow of money to new startups in the beginning.

The new rules aim to make sure investors are serious and understand the risks.

The good news is, the changes might lead to better investing in the long run.

The government is also trying to make it easier for investors to become accredited.