The Securities and Exchange Board of India (Sebi) has introduced a consultation paper proposing flexibility for Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) to manage unliquidated investments beyond the expiration of their tenure. The proposal suggests allowing AIFs to continue with the same scheme for a specified period or dissolution period to fully liquidate unliquidated investments. Additionally, Sebi recommends extending flexibility to the dissolution process for venture capital funds through migration to the AIF regime. The regulator seeks public comments on the proposal until February 2, considering representations from the industry regarding tax-related issues and the complexity of the liquidation process.
Sebi Proposes Flexibility for AIFs and VCFs in Dealing with Unliquidated Investments
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/01/15193743/1685549430-5238.jpg)