SEC Issues Proposal on Crowdfunding

On October 23, 2013 the Securities and Exchange Commission (“SEC”) unanimously voted a proposal¹ to allow companies to raise funds by issuing equity through crowdfunding. If passed, the proposal should be good news for all those small to medium companies hoping to increase their fund-raising capabilities by issuing securities and selling them to crowdfunding investors.

Some of the limitations set by SEC under the proposed regulation are:

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