IVCA Urges Venture Capital Funds to Act on SEBI’s Migration Framework Before July 19, 2025

The Indian Venture and Alternate Capital Association (IVCA), calls upon all Venture Capital Funds (VCFs) operating under the repealed SEBI (Venture Capital Funds) Regulations, 1996, to take immediate note of the migration framework introduced via SEBI’s circular dated August 19, 2024.

As per SEBI’s directive, VCFs with schemes whose liquidation period has not expired and VCFs with at least one scheme whose liquidation period has expired—but not wound up and continue to hold unliquidated investments—have been granted a one-time option to migrate into the Alternative Investment Fund (AIF) regime under a newly introduced sub-category: Migrated Venture Capital Funds (MVCFs). The deadline to submit applications for this migration is July 19, 2025. 

IVCA has been actively engaging with stakeholders to ensure a smooth transition for legacy VCFs and reiterate the importance of timely action. As Rajat Tandon, President of IVCA, stated, “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. 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.”

Despite the regulatory clarity and incentives provided under this framework—including a simplified re-registration process, fee waivers, and tailored compliance requirements— the response to the said scheme is understood to be tepid. This low uptake is a cause for concern.

IVCA urges all legacy VCFs, especially those who are holding residual assets, to immediately evaluate their eligibility and apply to SEBI for migration before the due date. VCFs requiring support or clarification may reach out to IVCA or directly contact SEBI at the earliest. Those VCFs who have wound up all schemes or schemes where no investment has been made are further urged to surrender their registration to SEBI. 

This regulatory transition is aimed at creating a more consistent and robust framework for fund governance, investor protection, and asset resolution. IVCA remains committed to supporting its members and the broader ecosystem during this important phase.