SEBI launches VC fund settlement scheme for legacy fund closure

Capital markets regulator Securities and Exchange Board of India (SEBI) has introduced the VCF Settlement Scheme 2025 to help older venture capital funds (VCFs) close their operations in an organised manner.In 2012, SEBI notified the Alternative Investment Funds (AIF) Regulations, which led to the repealing of VCF Regulations, 1996. However, VCFs registered under the VCF Regulations were allowed to be regulated under the repealed norms till their existing schemes or funds were wound up.The new scheme offers the VCFs a way to settle any regulatory issues that have arisen due to delays in winding up expired schemes that still hold unliquidated investments.