IVCA urges legacy VCFs to act fast on Sebi's one-time migration window

The new SEBI framework grants legacy venture capital funds a one-time migration window with fee waivers and simplified re-registration under the AIF regime

India’s top private capital industry body is calling on legacy venture capital funds (VCFs) to act swiftly on a key regulatory deadline, warning that delays could disrupt compliance and fund governance.

 

The Indian Venture and Alternate Capital Association (IVCA) on Friday urged VCFs registered under the now-defunct SEBI (Venture Capital Funds) Regulations, 1996, to migrate to the Alternative Investment Fund (AIF) regime by 19 July 2025. The migration is part of a framework unveiled by the Securities and Exchange Board of India (SEBI) in August 2024.

 

“This is a critical regulatory window for legacy VCFs to realign with the current AIF framework,” said Rajat Tandon, President, IVCA. “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.”

 

 

Under the new framework, qualifying VCFs, including those with unliquidated investments or expired schemes not yet wound up, have been granted a one-time window to transition into a new sub-category called Migrated Venture Capital Funds (MVCFs). The framework includes incentives such as fee waivers, a simplified re-registration process, and tailored compliance requirements.

 

“Despite regulatory clarity and incentives provided under this framework, the response to the said scheme is understood to be tepid. This low uptake is a cause for concern,” said IVCA.

 

The industry body has called on all legacy VCFs, particularly those still holding residual assets, to promptly assess their eligibility and submit applications to the regulator for migration under the new framework before the given deadline. It also advised funds that have completed winding up or have not made any investments to formally surrender their registrations.

 

The migration effort is part of SEBI’s broader agenda to streamline fund structures and enhance investor protection, as India positions itself as a global fund management hub.