Sebi Outlines Migration Process for Venture Capital Funds to AIF Rules

The Securities and Exchange Board of India (Sebi) has detailed the procedures for Venture Capital Funds (VCFs) to transition to Alternative Investment Fund (AIF) regulations. VCFs registered before the AIF rules can migrate to manage unliquidated investments until July 2025. Specific conditions and reporting requirements have been outlined for both migrating and non-migrating funds.

The Securities and Exchange Board of India (Sebi) on Monday unveiled the procedures and conditions for Venture Capital Funds (VCFs) to migrate to Alternative Investment Fund (AIF) regulations.

In July, Sebi allowed VCFs registered before the introduction of AIF regulations to transition, now termed 'Migrated VCFs,' to handle unliquidated investments post-scheme tenure until July 19, 2025.

VCFs opting for migration must submit their original registration certificate and specific details as per Sebi's circular. Non-migrating VCFs with active schemes will face stricter reporting requirements, while VCFs with expired schemes must wind up and surrender their registration by March 31, 2025.