SEBI Extends Liquidation Timeline for Migrating Venture Capital Funds
SEBI/HO/AFD/SEC-3/P/CIR2025/85
Link to SEBI’s Circular
Applicability:
This circular applies to all SEBI-regulated Alternative Investment Funds (AIFs).
📅 Issued on: June 6, 2025
📄 Circular No.: SEBI/HO/AFD/SEC-3/P/CIR2025/85
Background
In continuation of its previous circular (SEBI/HO/AFD/AFD-POD-1/P/CIR/2024/111) dated August 19, 2024, SEBI has now issued a new directive that impacts Venture Capital Funds (VCFs) transitioning to the SEBI (Alternative Investment Funds) Regulations, 2012.
Key Update: Extended Liquidation Period
The additional liquidation period for VCFs migrating to AIF Regulations has been extended from July 19, 2025, to July 19, 2026.
This applies to VCFs that have at least one scheme whose liquidation period has expired but has not yet been wound up under Regulation 24(2) of the erstwhile SEBI (VCF) Regulations.
Important Dates
Event
Last date to apply for migration July 19, 2025
Extended liquidation period ends July 19, 2026
What Remains Unchanged
All other conditions and modalities outlined in the earlier circular dated August 19, 2024, remain unchanged.
The application deadline for migration continues to be July 19, 2025.
Why This Matters
This move comes in response to industry feedback and is intended to facilitate smoother migration for legacy VCFs. It offers more time for fund closure or restructuring in line with the updated AIF framework.
SEBI’s Statement
This circular was issued under the authority granted by:
Section 11(1) of the SEBI Act, 1992
Regulation 19AF(4), Regulation 36, and Regulation 39(2) of AIF Regulations, 2012
SEBI reiterates that these actions are taken in the interest of investor protection and to support the development of India’s securities markets.