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New Delhi: The Indian Venture and Alternate Capital Association (IVCA) has called on all legacy Venture Capital Funds (VCFs), operating under the repealed SEBI (Venture Capital Funds) Regulations, 1996, to act promptly on SEBI’s migration framework. Introduced via a circular dated August 19, 2024, the framework offers a one-time opportunity for eligible VCFs to migrate to the Alternative Investment Fund (AIF) regime under a new sub-category called Migrated Venture Capital Funds (MVCFs). The deadline to submit applications for migration is July 19, 2025.

SEBI’s Regulatory Pathway for Legacy Funds

Under this framework, VCFs whose schemes are either still active or have expired but are not yet fully wound up—and continue to hold unliquidated investments—can transition to the AIF structure. This regulatory move aims to streamline fund governance and provide clarity in managing residual assets. The initiative includes simplified re-registration, fee waivers, and relaxed compliance requirements to ease the transition for fund managers.

Industry Response and IVCA’s Concerns

Despite the regulatory clarity and support mechanisms, IVCA has expressed concern over the lukewarm response from eligible funds. IVCA President Rajat Tandon highlighted the importance of timely participation, stating that this window is crucial for legacy funds to realign with the evolving regulatory landscape. He reaffirmed IVCA’s commitment to assist members and facilitate a smooth migration process.

Advisory for All VCFs

IVCA has urged all concerned VCFs to immediately assess their eligibility and apply for migration before the July 19, 2025 deadline. Those who have already wound up all schemes or made no investments should consider surrendering their SEBI registration. For assistance or further clarification, funds can reach out to IVCA or directly connect with SEBI.

Building a Stronger Regulatory Future

This migration framework is part of SEBI’s broader effort to create a more robust and consistent structure for alternative investments in India. With investor protection, regulatory alignment, and asset resolution at its core, the framework is a vital step forward. IVCA continues to serve as a bridge between the industry and the regulator to ensure effective implementation and compliance.