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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Modalities for migration of Venture Capital Funds registered under erstwhile SEBI (Venture Capital Funds) Regulations, 1996 to SEBI (Alternative Investment Funds) Regulations, 2012

19-Aug-2024 | SEBI/HO/AFD/AFD-POD-1/P/CIR/2024/111

SEBI has issued a circular on modalities for migration of Venture Capital Funds registered under erstwhile SEBI (Venture Capital Funds) Regulations, 1996 to SEBI (Alternative Investment Funds) Regulations, 2012.

Vide this circular, SEBI has specified certain documents to be submitted by the VFCs to SEBI while applying for migration to AIF regulations as "Migrated VCFs" in terms of Regulation 19X(1) of EBI (Alternative Investment Funds) Regulations, 2012.

Further, SEBI has also specified conditions that following VCFs has to follow while opting for migration to AIF Regulations:-
1. VCFs having only schemes whose liquidation period (in terms of Regulation 24(2) of VCF Regulations) has not expired.
2. VCFs having at least one scheme which has not been wound up post expiry of its liquidation period (in terms of Regulation 24(2) of VCF Regulations)

Further, the flexibility to opt for migration to AIF regulations shall not be available to those VCFs wherein:-
1. All the schemes of the VCF have been wound up; and/or,
2. No investment has been made by schemes of the VCF which have not been wound up.

Such VCFs shall submit an application to SEBI for surrender of their registration on or before March 31, 2025, failing which appropriate action shall be initiated to cancel the certification of registration.

Please refer to the circular for more information.

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