Indian Venture Capitalist Association (IVCA) directed enterprise capitalists who haven’t migrated to AIF framework, to achieve this before the SEBI deadline of July 19, 2025, in accordance to a press release.
“Despite the regulatory clarity and incentives provided under this framework—including a simplified re-registration process, fee waivers, and tailored compliance requirements— the response to the said scheme is understood to be tepid. This low uptake is a cause for concern,” IVCA mentioned in its assertion. According to the SEBI round dated August 2024, a migrated enterprise capital fund will likely be thought of an Type 1 AIF.
“The old VCF (Venture Capital Fund) guidelines were existing even in the late 1990s, and in 2012, the AIF regulations were introduced. Every fund has a limited life of generally 8-10 years. There are a lot of VC funds registered with SEBI. And as of date, many of the VCs while their tenure has got over, have not completed their winding up and termination process via-a-vis erstwhile VCF regulation of SEBI,” mentioned Rahul Shah, Executive Vice President of IVCA. ”
He additional added that the members of IVCA felt that the July 19 deadline was too fast for them to comply and that they’d choose liquidating the VC funds first before migrating.” He additional added that the VC fund managers have been of the view that they quite than make efforts liquidating the present investments within the fund by the given deadline after which apply for migration, the IVCA was pushing them to full the migration course of before the deadline.
Published – May 30, 2025 10:55 pm IST
