The law
Companies Act 2013, Sec 42 (private placement)
Offers of securities must go only to identified persons, not more than 200 in a financial year per class; no public advertisement or use of media, marketing or distribution channels or agents to inform the publicSource
Companies Act 2013, Sec 42(10)
A placement that breaks Sec 42 can be treated as a public offer; the company, promoters and directors face a penalty up to the amount raised or ₹2 crore, whichever is lower, and refund with interestSource
Companies (Prospectus and Allotment of Securities) Rules 2014, Rule 14(1) proviso (May 2022)
No offer to a body corporate or national of a country sharing a land border with India without government approval under the FEMA Non-Debt Instruments Rules attached to the offerSource
SEBI angel fund condition (as summarised by DPIIT)
SEBI-registered angel funds may invest only in startups not promoted by or related to a corporate group with turnover above ₹300 croreSource
Startup India Fund of Funds 2.0 (notified April 2026)
₹10,000 crore implemented by SIDBI; it invests in SEBI-registered AIFs, which invest in startups; startups do not apply to SIDBI directlySource
Government fee
None. Programme or event fees, if any, are set by the organiser and are not government fees.