- VCF Settlement Scheme 2025 runs from July 21 to January 19, 2026, helping Venture Capital Funds clear winding-up issues.
- The scheme is meant for migrated VCFs with unliquidated investments past their liquidation deadlines.
- Not joining may lead to SEBI taking regulatory action after the deadline.
If you run a Venture Capital Fund, it’s important to know about the Venture Capital Funds Settlement Scheme 2025 recently launched by SEBI. This scheme, starting on July 21, 2025, gives migrated VCFs a chance to fix violations related to winding-up rules before January 19, 2026. Many VCFs still hold investments that haven’t been liquidated even after their liquidation periods ended, and this scheme aims to make the settlement process easier under the new regulatory setup.
Key Features of Venture Capital Funds Settlement Scheme 2025
Venture Capital Funds Settlement Scheme 2025 is made to help VCFs that moved from the old VCF Regulations to the Alternative Investment Funds (AIF) framework. Many VCFs couldn’t fully liquidate investments within the original time. Recognizing this, SEBI offers a settlement window from July 21, 2025, to January 19, 2026. This gives funds with unliquidated investments past their deadlines a chance to regularize their status according to current rules.
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Who Can Apply?
This settlement is mainly for migrated VCFs — Venture Capital Funds that switched to the AIF regulations after SEBI repealed the older VCF Regulations in May 2012. These VCFs might still have unliquidated investments at the end of their scheme or liquidation periods. Only funds that moved as per the rules under AIF Regulations and are struggling with winding up can participate.
How to Apply & Important Dates
If you want to take part in this scheme, keep these dates in mind:
| Date | Event |
|---|---|
| July 19, 2025 | Last date to apply for migration to the AIF regime |
| July 21, 2025 | Scheme starts |
| January 19, 2026 | Scheme ends and last day to settle winding-up issues under it |
To apply, VCFs should send requests to SEBI following the guidelines on the official SEBI website www.sebi.gov.in. It’s best to comply early to avoid last-minute pressure or penalties.
What You Gain from the Scheme
This scheme offers several benefits to VCFs that join:
Funds can clear issues where liquidation timelines ended but winding up didn’t occur.
Funds get more time to finish liquidation and smoothly close schemes.
Make sure you follow SEBI’s updated AIF regulations and avoid penalties.
What Happens if You Don’t Join?
SEBI has warned that funds which don’t take this chance by January 19, 2026, and still hold unliquidated investments will face regulatory steps. This could mean enforcement action, fines, or restrictions under SEBI’s authority. So, it’s smart not to delay if your fund has pending winding-up duties.
With the Venture Capital Funds Settlement Scheme 2025, SEBI aims to bring clarity and help affected VCFs promote proper winding-up and compliance under the AIF framework. For more info and application forms, visit SEBI’s official site: https://www.sebi.gov.in.
Stay updated and act quickly to get the benefits from this government scheme started just for you.