Is Crowdfunding Legal & Safe In India? Legal Crowdfunding Options | Ketto

Online Crowdfunding Legal In India
Crowdfunding Legal In India

Where did the concept of crowdfunding originate?

Online crowdfunding originated in the western world. Crowdfunding has recently gained immense popularity among the Indian masses during the recent covid-19 pandemic. However, since the word itself is new, many still don’t realise the power it has and whether it’s legal in India. Through this article, we try to explain in brief different forms of online crowdfunding and their legality in our country.

Experts positively predict, crowdfunding to be the next biggest innovation in the field of medical fundraising. There are many sources to raise funds, like bank loans, corporate investments, or Venture Capitals. However, online crowdfunding is hands down the easiest and safest means to obtaining funds through individuals who believe in your cause. With proper management, it has proved to be an excellent funding alternative to support a variety of causes and emergency financial needs.


Is Online Crowdfunding Legal in India?

People Frequently enquire whether Crowdfunding is Safe & Legal In India? The answer is, “Yes!”, Online Crowdfunding and Online Fundraising is legal in India.  Ketto provides a Safe, Reliable & Simplified method of Raising Funds Online through its Online Crowdfunding Platform. On Ketto individuals can raise funds for the following:

  1. Raise funds for medical emergencies
  2. You can start a online crowdfunding campaign to pay for expensive hospitalisation bills.
  3. You can raise funds in memory of a loved one.
  4. On Ketto you can raise funds to pay for chemothreaphy & expensive cancer medications.

Ketto provides online fundraising and online crowdfunding options for many other needs. Visit Ketto to know more.


What Forms of Crowdfundunding are Legal in India:

  • Donation and Fundraising For Social Causes: This includes contributions or funds received or made towards a social cause. Here, the donors don’t seek any form of returns for the contributions they have made.
  • Medical Crowdfunding: In this fundraising option donors contribute towards the campaign raising funds for individual or general public medical needs. 
  • Education Crowdfunding: In this type of fundraising students, teachers, non-teaching faculty or parents can start fundraising campaign to support educational needs.
  • Cancer Crowdfunding: In this online fundraising option cancer patients or the patients family or friends can start a campaign on Ketto to raise funds to support the expensive treatment costs that arsie.

Crowdfunding options that are illegal in India are as follows:

Forms of Crowdfunding Illegal in India

  • Equity-Based Crowdfunding: It involves fundraising for early-stage ventures or business ideas by offering equity interest to online investors in return for their funds. 

The Securities and Exchange Board of India(SEBI) considers equity-based crowdfunding as unregulated, unauthorized, and illegal. It has been done to protect the interest of investors in India because every investor may not be skilled or experienced enough to assess the risk involved, and in the absence of any regulations, it can prove risky for small investors.


The Final Word

Ketto was founded in 2012 and has assisted numerous individuals to pay their medical bills through crowdfunding. Crowdfunding is still in its early stages in India, the future of online fundraising looks promising. SEBI and RBI are working together to develop a regulatory framework to control the impact of crowdfunding and state its legal implications. With proper regulations and policies in place, we can even expect changes in the current status of crowdfunding.


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