While the amended regulations fill in the gaps of digital governance, eligibility criteria for startups, inadequate disclosures, and angel investing reform in a comprehensive way, these amendments' success will depend on reconciling 3 conflicts: the mandatory dematerialisation of the foreign entities, moral hazard created by increased eligibility criteria, and concentration of the capital pool within a thin accreditation base.

This blog examines whether a prospectus forward-looking statement regime can act as a corrective framework to India’s information asymmetry problem.

The question remains whether startups will adapt to this new regulatory environment.