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UI invested in multiple startups through Tyke back in 2022 in the form of CSOPs. Although I was able to see subsequent funding rounds being raised by a few startups, there has been no corresponding change in valuations reflected for investors.
I recently discovered that unlisted private limited companies are generally prohibited from raising funds from the public by way of securities or security-linked instruments under the Companies Act, 2013. Further, such offerings through online platforms accessible to the public may not be in line with the requirements of Section 42 (private placement) and other related provisions of the Act which questions the legality and enforceability of the investments made through the platform.
However, the agreement also states that investors shall not seek refunds after accepting the contract. What is surprising is that if such structures are not in compliance with the applicable legal framework, how were they permitted to proceed in the first place? One would expect that the issue would have been identified at the stage of incorporation, regulatory review, or subsequent compliance processes.
In light of the above, I request that suitable remedies be provided to enable recovery of my invested amount.
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Ahi advocate this side,
This is a complex regulatory and contractual issue. Restriction on refunds in agreement does not automatically make everything legal.
You should first send a legal notice seeking clarification and recovery. You can also explore complaint before MCA or SEBI depending on structure used.Keep all agreements, payment proof, and platform communication ready. Consult a advocate before taking further action. feel free to message me if you need help
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