SEBI issues notice on venture capital fund settlement plan 2025

Tuesday, Jul 15, 2025 12:38 am ET1min read

SEBI issues notice on venture capital fund settlement plan 2025

The Securities and Exchange Board of India (SEBI) has issued a notice regarding the settlement plan for venture capital funds in 2025. The notice outlines the regulatory framework and guidelines for venture capital funds operating in India, emphasizing transparency, compliance, and investor protection.

SEBI's notice comes amidst a significant resurgence in crypto venture capital (VC) funding, which reached $10.03 billion in the second quarter of 2025 [1]. This surge was driven by Bitcoin strategies and real-world asset (RWA) tokenization, with notable investments in Strive Funds, Twenty One Capital, and Securitize [1]. The notice aims to ensure that these funds adhere to the regulatory requirements and contribute to the stability and growth of the Indian financial ecosystem.

The notice emphasizes the importance of transparent reporting and compliance with regulatory standards. It outlines the procedures for fund settlement, including the submission of financial statements, compliance reports, and other regulatory filings. SEBI also emphasizes the need for regular audits and monitoring to ensure the funds operate within the prescribed limits and adhere to the best practices in the industry.

The notice also addresses the growing trend of Bitcoin-focused funds and real-world asset tokenization, which have gained significant traction in the global crypto VC landscape. SEBI acknowledges the potential of these innovative investment strategies but underscores the need for stringent regulatory oversight to mitigate risks associated with these emerging markets.

The notice is a part of SEBI's broader efforts to foster a sustainable and resilient crypto investment landscape in India. It aims to provide a clear regulatory framework that promotes innovation while ensuring investor protection and market stability.

References:
[1] https://beincrypto.com/biggest-crypto-vc-investments-2025-so-far/

SEBI issues notice on venture capital fund settlement plan 2025

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