Venture Intelligence (TSJ Media Pvt. Ltd.)
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Sebi settles proceedings with 29 VC funds over liquidation norm violations
The Securities and Exchange Board of India (Sebi) has settled enforcement proceedings with 29 venture capital funds (VCFs) that had failed to liquidate investments after the expiry of their schemes’ tenure.The settlement was carried out under the Venture Capital Fund Settlement Scheme, 2025, which was introduced to resolve regulatory violations linked to legacy VCFs that continued to hold unliquidated investments beyond their permitted liquidation period.Gaja Capital, SBI Macquarie, ASK Real Estate, SIDBI SME Venture and Kotak India Venture are among the 29 funds that paid settlement amounts ranging between INR 2 lakh and INR 9 lakh.The issue arose after the introduction of the Alternative Investment Funds (AIF) Regulations, 2012, which replaced the earlier Venture Capital Funds Regulations, 1996. While existing VCFs were allowed to continue under the old framework until their schemes were wound up, several funds failed to liquidate investments even after their liquidation period had expired.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.