SEBI has launched the VCF Settlement Scheme 2025 to address old compliance issues in winding up Venture Capital Funds (VCFs). Open from July 21, 2025, the scheme helps VCFs migrated to the AIF regime to regularize past violations and protect investor interests.

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• SEBI opens VCF Settlement Scheme 2025 on July 21; closes January 19, 2026.
• Applies only to VCFs migrated to AIF regime with expired liquidation period.
• Offers one-time chance to resolve non-compliance without harsh penalties.
• Aims to protect investors stuck in technically expired, non-wound-up schemes.
• VCFs must have migrated before July 19, 2025, to be eligible.
• Allows winding-up after investor consent and structured dissolution period.
• Scheme supports smoother transition from VCF to AIF regulations.
• SEBI may act against defaulters not using the scheme after deadline.
• Reinforces regulatory trust and voluntary compliance culture.
• Key move to unlock investor capital from legacy funds.