IVCA urges legacy VC funds to act on SEBI migration framework before July 19
Funds eligible for the transition include those with schemes that have not yet reached the end of their liquidation period, as well as those with expired schemes still holding unliquidated investments.
The Indian Venture and Alternate Capital Association (IVCA) has called on legacy venture capital funds to promptly act on the Securities and Exchange Board of India’s (SEBII) migration framework before July 19, 2025.
The framework, introduced through SEBI's circular dated August 19, 2024, offers a one-time window for venture capital funds (VCFs) operating under the now-repealed SEBI (Venture Capital Funds) Regulations, 1996, to transition into the more current Alternative Investment Fund (AIF) regime under a newly created sub-category known as Migrated Venture Capital Funds. The deadline to submit applications for this migration is July 19, 2025.
Funds eligible for the transition include those with schemes that have not yet reached the end of their liquidation period, as well as those with expired schemes still holding unliquidated investments.
“This is a critical regulatory window for legacy VCFs to realign with the current AIF framework. The migration framework introduced by SEBI not only offers operational clarity but also provides a structured path for managing residual assets and ensuring regulatory compliance," said Rajat Tandon, President of IVCA, in a statement.
"We urge all concerned VCFs to evaluate this option without delay. IVCA will continue to be the bridge between our members and SEBI, ensuring all necessary support is available throughout the migration process,” he added.
Despite the streamlined re-registration process, compliance relaxations, and fee waivers built into the framework, the uptake has reportedly been low—raising concerns within the industry body. IVCA has urged eligible funds to assess their status and submit migration applications to SEBI before the deadline.
Funds that have already wound up all their schemes or have made no investments are advised to formally surrender their registration.
Describing the move as part of a broader effort to enhance governance standards, investor protection, and asset resolution, IVCA has reiterated its commitment to work with SEBI and industry stakeholders to facilitate a smooth and efficient transition.