The circular provides modalities for migration of Venture ...

SEBI Announces Migration Process for Venture Capital Funds to Alternative Investment Funds Regulations by 2025 Deadline.

August 20, 2024

Circulars     SEBI

The circular provides modalities for migration of Venture Capital Funds (VCFs) registered under erstwhile SEBI (Venture Capital Funds) Regulations, 1996 to SEBI (Alternative Investment Funds) Regulations, 2012. It allows VCFs flexibility to migrate as "Migrated VCFs" under AIF Regulations and avail facility to deal with unliquidated investments upon expiry of tenure. Key points are: - VCFs can apply to SEBI for migration by July 19, 2025, by submitting requisite information. - For schemes whose liquidation period hasn't expired, tenure upon migration shall continue as per original PPM or be determined with 75% investor approval. - For schemes not wound up post liquidation period expiry, a one-time additional liquidation period of one year from July 20, 2024 is provided. - Investors, investments, and units issued under VCF Regulations shall be deemed those of Migrated VCF under AIF Regulations. - Regulatory reporting and compliance requirements from AIF Regulations are specified for applicability on Migrated VCFs. - VCFs not opting for migration face enhanced reporting or regulatory action based on status of liquidation period. The circular outlines responsibilities of trustees, sponsors, and managers, and comes into force immediately to facilitate migration of VCFs to AIF regime.

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