Markets regulator SEBI has granted an extension to Venture Capital Funds (VCFs) migrating to the Alternative Investment Funds (AIF) regime. VCFs whose schemes have crossed their liquidation period but are yet to be wound up will now get an additional year — until July 19, 2026 — to complete the process.

This move modifies an earlier circular issued on August 19, 2024, which had allowed such funds time until July 19, 2025. The regulator’s latest decision comes after industry consultations and representations seeking more time for smoother migration.

However, SEBI has clarified that the final date for applying for migration to the AIF framework remains unchanged at July 19, 2025.

The rest of the provisions outlined in the previous circular remain intact.

The relaxation is aimed at easing the transition process for older venture capital funds governed under the now-defunct SEBI (Venture Capital Funds) Regulations, 1996, as they shift to the newer SEBI (AIF) Regulations, 2012.

The updated circular has come into effect immediately and is available on SEBI’s official website.

This directive has been issued under the powers granted to SEBI by the SEBI Act, 1992 and relevant provisions of the AIF Regulations, 2012, to safeguard investor interest and ensure smooth regulatory compliance.