Indian regulations require most private companies registered in India to hold their securities in dematerialized or “demat” format (i.e., digital format) effective June 30, 2025. This is an extension of the original deadline.
Without a demat account, funds may face restrictions when:
- Making new equity investments
- Participating in follow-on offerings
- Transferring existing securities
- Receiving distributions
We’ve found this process can be complicated and time-consuming, often taking several months. Moreover, many demat providers are unable to support series LP structures or even US entities, and pricing estimates are often misleading, failing to include mandatory associated costs such as apostilled documents and PAN applications.
To simplify this process, AngelList’s native fund administrator, Belltower, offers an add-on service to open demat accounts on behalf of impacted funds.
In order to ensure that funds do not encounter future restrictions due to demat account application delays, funds, SPVs, and RUVs submitting their first investment into an Indian portfolio company will be required to purchase an add-on service opening a demat account on behalf of the fund unless the fund already has a demat account.
Funds that have already invested into Indian portfolio companies may still purchase this add-on.
Details:
- Estimated Timeline: 12–16 weeks (may take longer)
- Cost: $2800
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Includes:
- PAN application
- Demat account application and setup
- Apostilled fund documents
- Ongoing maintenance
To enroll in this service, please contact your account manager.
FAQs:
Which provider does Belltower work with?
Belltower works with Accounti to provide this service.
Which bank will house my fund’s demat account?
Your fund’s demat account will be at Kotak Securities.
Can the same demat account be used for other funds I run on the platform?
No. Each fund needs to open its own demat account. This applies to SPVs and RUVs as well as rolling funds and traditional funds.
Can I open a demat account for my fund even if I haven’t yet invested into an Indian portfolio company?
Yes. If you are confident your fund will invest into an Indian portfolio company in the near future, we encourage you to start the demat process as soon as possible. Just reach out to your account manager to get the process started. However, please note that we will not be able to refund the costs to your fund, so we recommend opening a demat account only if you’re confident the fund will invest into an Indian portfolio company in the future.
Can I begin the process before my fund has closed?
Please check with your account manager about this. Typically, we will be able to begin the process for your venture fund before it has closed, but may not be able to do so for your SPV or RUV due to the way such funds are formed.
Can I complete an investment into an Indian portfolio company if the fund doesn’t yet have a demat account?
This will depend on the portfolio company. Usually, portfolio companies are able to accept investments from funds that do not yet have demat accounts, but there are some exceptions. We will ask the portfolio company for confirmation before beginning the application.
Does this regulation apply to my fund if I have Indian LPs?
This regulation only applies to funds that have live investments in Indian portfolio companies. It is not affected by the nationalities of your fund’s LPs.