SEBI extends deadline for venture capital firms to migrate to AIF regulations
The market watchdog has extended the deadline for VCs to migrate to the Alternative Investment Funds Regulations, 2012 by one year to July 19, 2026.
The Securities and Exchange Board of India extended the deadline for venture capital firms (VCs) to migrate to the Alternative Investment Funds (AIF) Regulations, 2012 by one year to July 19, 2026, according to a circular published on Friday.
The extension is only applicable to those firms with expired schemes that choose to migrate to the AIF regulations. This would help VCs holding on to unliquidated assets, even after the liquidation period of the fund has ended, to migrate to the newer regime without an immediate penalty.
In a circular dated August 19, 2024, the market watchdog instructed VC firms to migrate to the SEBI regulations by July 19 this year. The extension was granted based on consultations held with the industry and representatives, the circular noted.
The AIF Regulations, introduced in 2012, aim to create a broader and modern framework to replace the VCF Regulations of 1996 that primarily catered to traditional early-stage venture capital and did not accommodate for emerging forms of capital pools like private equity and hedge funds.
Many VC firms have gone on to raise new funds under the AIF Regulations while having older funds registered under the 1996 regulations.
The circular added that the last date for applying for migration with SEBI for all remaining eligible VCFs remains July 19, 2025, and all other provisions in the August 19, 2024 circular remain unchanged.
Edited by Kanishk Singh