CIRCULAR
SEBI/HO/AFD/PoD/CIR/P/2023/137 August 04, 2023
To
All Alternative Investment Funds
All Venture Capital Funds [registered under erstwhile SEBI (Venture Capital Funds)
Regulations, 1996]
Sir/ Madam,
Sub: Validity period of approval granted by SEBI to Alternative Investment Funds (AIFs)
and Venture Capital Funds (VCFs) for overseas investment
1. In terms of SEBI Circular No. SEBI/VCF/Cir no. 1/98645/2007 dated August 09, 2007,
and SEBI Master Circular No. SEBI/HO/AFD/PoD1/P/CIR/2023/130 dated July 31, 2023,
VCFs and AIFs, respectively, have a time limit of six months from the date of prior
approval from SEBI for making the allocated investments in offshore venture capital
undertakings. In case the applicant AIF/VCF does not utilize the limits allocated within
six months, SEBI may allocate such unutilized limit to other applicant AIFs/VCFs.
2. In this regard, taking into account recommendations of the Alternative Investments
Policy Advisory Committee, it has been decided to reduce the aforesaid time limit for
making overseas investments by AIFs/VCFs from six months to four months, so that
the allocated limit is utilised efficiently and, if unutilised, the same is again available to
the AIF industry in a shorter time span.
3. The provisions of this circular shall apply to the overseas investment approvals granted
by SEBI subsequent to the issuance of this circular.
4. This circular is issued with the approval of the competent authority.
5. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors
in securities and to promote the development of, and to regulate the securities market.
6. The circular is available on SEBI website at www.sebi.gov.in under the categories "Legal
framework - Circulars" and "Info for - Alternative Investment Funds”.
Yours faithfully,
Sanjay Singh Bhati
Deputy General Manager
Tel no.: +91-22-26449222
ssbhati@sebi.gov.in