SEBI Extends Additional Liquidation Period for Migrating Venture Capital Funds to AIF Regulations

The Securities and Exchange Board of India (SEBI) has extended the additional liquidation period for Venture Capital Funds (VCFs) migrating to the Alternative Investment Funds (AIF) Regulations by one year, from July 19, 2025, to July 19, 2026. This decision provides relief to VCFs whose schemes' liquidation periods have expired but have not yet been wound up. The extension, a result of industry consultations, offers regulatory flexibility while maintaining the original migration framework. SEBI's move is part of its ongoing efforts to streamline the regulatory landscape for investment funds and facilitate a smoother transition for VCFs to the AIF regime. This extension will allow affected funds more time to complete their liquidation processes and comply with the new regulations, ensuring a more orderly and efficient migration. The original deadline of July 19, 2025, for VCFs to apply for migration remains unchanged, emphasizing the importance of timely action from the funds.