SEBI Extends VCF Migration Deadline to AIF Framework

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  • Last Updated on 9 June, 2025

SEBI VCF liquidation extension 2026

Circular No. SEBI/HO/AFD/SEC-3/P/CIR2025/85, Dated 06.06.2025

The Securities and Exchange Board of India (SEBI) has notified an extension to the additional liquidation period granted to Venture Capital Funds (VCFs) migrating to the regulatory framework under the SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations).

1. Revised Timeline for Migration

As per the latest notification, the deadline for availing the additional liquidation period has been extended from July 19, 2025, to July 19, 2026. This one-year extension provides additional time for VCFs to complete their transition to the AIF regime in a structured and compliant manner.

2. Reason for Extension

The decision comes in response to representations from industry stakeholders and subsequent consultations conducted by SEBI. The extension aims to facilitate a smooth and orderly migration, allowing VCFs adequate time to wind down legacy structures and align with the AIF framework.

3. No Change in Other Provisions

SEBI has clarified that all other provisions outlined in its earlier circular dated August 19, 2024, remain unchanged. VCFs are expected to continue complying with the applicable terms and conditions laid down in the said circular.

4. Regulatory Context

This move reflects SEBI’s commitment to regulatory flexibility and market facilitation, while ensuring that the transition to a unified AIF framework upholds investor protection, transparency, and accountability.

Click Here To Read The Full Circular

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Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied