SEBI Extends Deadline For Venture Capital Funds To Finalise Transition To AIF Rules

The Securities And Exchange Board of India extended the deadline for venture capital funds to finalise their transition to Alternative Investment Funds rules. This additional liquidation period, initially set to expire on July 19, 2025, has now been pushed back by one year to July 19, 2026.

This extension applies to VCFs with at least one scheme that hasn't been wound up after its liquidation period ended, a notice issued on Friday said.

SEBI had previously outlined the conditions for this migration in August 2024. The latest extension was granted following industry feedback and to ease the transition process.

SEBI has extended the additional liquidation period for venture capital funds transitioning to Alternative Investment Funds rules to July 19, 2026. This decision, announced in a circular on Friday, was made based on industry feedback and to help streamline the migration process.

A 'Migrated VCF' is defined as a Venture Capital Fund (VCF) that transitions to a sub-category of VCF under Category I - Alternative Investment Fund norms. The market regulator confirmed that VCFs undergoing this transition are granted an additional liquidation period until July 19, 2025.

For Venture Capital Funds to migrate to AIFs rules, SEBI requires them to submit their original registration certificate and other specific information as mandated by the regulator.

SEBI had stated that after migration, existing investors, investments, and units will be transferred under the AIF Regulations without change.

(With Inputs From PTI)