India, July 15 -- 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 However, VCFs registered under the VCF Regulations were allowed to be regulated under the repealed norms till their existing schemes or funds were wound up.

However, a number of VCFs were unable to liquidate their investments during the tenure of the fund, and continue to hold the unliquidated investments beyond the expiry of their tenure. To facilitate the movement of these VCFs to the AIF Regula...