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

SEBI sets July deadline for legacy funds to transition into the AIF regime; IVCA stresses urgency amid tepid industry response

The Indian Venture and Alternate Capital Association (IVCA) has issued an urgent advisory to all Venture Capital Funds (VCFs) operating under the repealed SEBI (Venture Capital Funds) Regulations, 1996. In a call to action dated May 30, 2025, IVCA emphasized the importance of adhering to SEBI’s migration framework before the July 19, 2025 deadline.
Migration to AIF Regime: A One-Time Opportunity
As per the SEBI circular issued on August 19, 2024, legacy VCFs have been granted a one-time option to migrate to the Alternative Investment Fund (AIF) regime under a newly introduced sub-category, Migrated Venture Capital Funds (MVCFs). The framework applies to:

• VCFs whose liquidation period has not yet expired
  
• VCFs with at least one scheme that has expired but still holds unliquidated assets

Why Action Is Critical Now
Rajat Tandon, President of IVCA, stressed the importance of prompt action, stating: “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.”
Despite SEBI offering benefits such as a simplified re-registration process, fee waivers, and flexible compliance requirements, the industry’s response so far has been limited. IVCA flagged this tepid uptake as a concern, urging eligible funds to act swiftly.

What VCFs Must Do
VCFs with valid schemes or residual assets are advised to evaluate their eligibility and apply for migration before the July 19, 2025 cutoff. Meanwhile, those that have wound up all schemes or made no investments should proactively surrender their SEBI registration.
IVCA has reiterated its commitment to providing members with the necessary support. It encourages VCFs to reach out to its compliance team or directly connect with SEBI for guidance.

A Step Toward Strengthening India’s Fund Ecosystem
The migration framework is part of SEBI’s broader effort to modernize and consolidate fund regulations. By bringing legacy VCFs under a consistent AIF framework, SEBI aims to improve fund governance, protect investor interests, and streamline the liquidation of dormant schemes.
The Indian Venture and Alternate Capital Association (IVCA) is the apex body representing India’s alternate capital industry. As a not-for-profit organization, IVCA supports over 450 member funds with a combined AUM of over $350 billion. These include domestic and global venture capitalists, private equity funds, infrastructure investors, real estate managers, and credit fund operators. IVCA also advocates for regulatory clarity and investor protection through its engagements with the Indian government and financial regulators.

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