Legacy VC funds shop for novel solutions as SEBI’s migration deadline nears

Legacy venture capital funds in India are exploring novel solutions to comply with SEBI’s migration deadline to switch to the Alternative Investment Funds (AIF) regime or wind up by July 19, 2025. According to Siddharth Mody, partner at JSA, non-compliant funds risk losing registration, facing monetary penalties, and compromising their ‘fit and proper’ test, which can impact fundraising. Some funds are seeking solutions like assigning indemnity risk to service providers for a fee, while others face challenges in winding up, such as obtaining updated valuations and tracing limited partners. Mody notes that migrating to the AIF regime will improve governance, investor protection, and provide benefits like regular NAV disclosures and the ability to launch continuation vehicles. Read Article