SEBI Unveiled ‘VCF Settlement Scheme 2025’ for VCF Liquidation

Current Context: The Securities and Exchange Board of India (SEBI) launched the VCF Settlement Scheme 2025 on 15 July 2025, to address regulatory violations by Venture Capital Funds (VCFs) whose liquidation periods have expired but remain incomplete.

• Effective from 21 July 2025 to 19 January 2026, the scheme offers a one-time opportunity for migrated VCFs to settle pending actions related to unliquidated investments.
• This follows SEBI’s repeal of VCF Regulations after the introduction of AIF Regulations in May 2012.
• Eligible VCFs must pay a non-refundable application fee of ₹25,000 plus 18% GST.
• The base settlement amount is ₹1 lakh for delays up to one year, with ₹50,000 added for each additional year, capped between ₹1 lakh and ₹6 lakh based on asset value.
• The cost must be borne by the investment manager or sponsor, not investors.
• SEBI has also granted an extra one-year window for VCFs to complete liquidation and wind-up.

Question:

Q.1 What is the non-refundable application fee under the SEBI Venture Capital Funds (VCF) Settlement Scheme 2025?
a) ₹10,000 + GST
b) ₹15,000 + 12% GST
c) ₹25,000 + 18% GST
d) ₹50,000 + 18% GST

Answer: c) Eligible VCFs must pay a non-refundable application fee of ₹25,000 plus 18% GST to avail of the settlement opportunity.