The Securities and Exchange Board of India (SEBI) plans to broaden the investor base for angel funds by removing the current cap of 200 investors and redefining qualified institutional buyers (QIBs) to include accredited investors. This change aims to facilitate greater contributions from discerning investors who understand investment risks, thus enhancing funding opportunities for startups. The proposal focuses solely on investments in unlisted companies, with no impact on QIB definitions in public markets. This initiative is expected to attract more verified investments, aiding the growth of the startup ecosystem in India.