-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 I4sMQ7LpE8qr+qiGRv4GKe5qYbWkS1/fNKpW+ZqOcZKH5v9ozCpW66hVqevYuuZN
 Y/gujNYr8Dxpt7oF2j6pIw==

<SEC-DOCUMENT>0001010549-06-000336.txt : 20060523
<SEC-HEADER>0001010549-06-000336.hdr.sgml : 20060523
<ACCEPTANCE-DATETIME>20060523145720
ACCESSION NUMBER:		0001010549-06-000336
CONFORMED SUBMISSION TYPE:	40-17F2
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060523
DATE AS OF CHANGE:		20060523
EFFECTIVENESS DATE:		20060523

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAPITAL SOUTHWEST CORP
		CENTRAL INDEX KEY:			0000017313
		IRS NUMBER:				751072796
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		40-17F2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-01056
		FILM NUMBER:		06861202

	BUSINESS ADDRESS:	
		STREET 1:		12900 PRESTON RD STE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
		BUSINESS PHONE:		9722338242

	MAIL ADDRESS:	
		STREET 1:		12900 PRESTON RD
		STREET 2:		SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CAPITAL SOUTHWEST CORP
		CENTRAL INDEX KEY:			0000017313
		IRS NUMBER:				751072796
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		40-17F2

	BUSINESS ADDRESS:	
		STREET 1:		12900 PRESTON RD STE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
		BUSINESS PHONE:		9722338242

	MAIL ADDRESS:	
		STREET 1:		12900 PRESTON RD
		STREET 2:		SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-17F2
<SEQUENCE>1
<FILENAME>capital4017f2052306.txt
<TEXT>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM N-17f-2

               Certificate of Accounting of Securities and Similar
                          Investments in the Custody of
                         Management Investment Companies

                    Pursuant to Rule 17f-2 [17 CFR 270.17f-2]

- --------------------------------------------------------------------------------

1. Investment Company Act File Number:               Date examination completed:
811-1056                                             March 31, 2006
- --------------------------------------------------------------------------------
 2. State identification Number:
- --------------------------------------------------------------------------------
AL           AK             AZ            AR             CA             CO
- --------------------------------------------------------------------------------
CT           DE             DC            FL             GA             HI
- --------------------------------------------------------------------------------
ID           IL             IN            IA             KS             KY
- --------------------------------------------------------------------------------
LA           ME             MD            MA             MI             MN
- --------------------------------------------------------------------------------
MS           MO             MT            NE             NV             NH
- --------------------------------------------------------------------------------
NJ           NM             NY            NC             ND             OH
- --------------------------------------------------------------------------------
OK           OR             PA            RI             SC             SD
- --------------------------------------------------------------------------------
TN           TX             UT            VT             VA             WA
- --------------------------------------------------------------------------------
WV           WI             WY           PUERTO RICO
- --------------------------------------------------------------------------------
Other (specify):
- --------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
Capital Southwest Corporation

- --------------------------------------------------------------------------------
4. Address of principal  executive  office (number,  street,  city,  state,  zip
code):
12900 Preston Road, Suite 700, Dallas, Texas 75230

- --------------------------------------------------------------------------------


<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM N-17f-2

               Certificate of Accounting of Securities and Similar
                          Investments in the Custody of
                         Management Investment Companies

                    Pursuant to Rule 17f-2 [17 CFR 270.17f-2]

- --------------------------------------------------------------------------------

1. Investment Company Act File Number:               Date examination completed:
811-1947                                             March 31, 2006
- --------------------------------------------------------------------------------
 2. State identification Number:
- --------------------------------------------------------------------------------
AL           AK             AZ            AR             CA             CO
- --------------------------------------------------------------------------------
CT           DE             DC            FL             GA             HI
- --------------------------------------------------------------------------------
ID           IL             IN            IA             KS             KY
- --------------------------------------------------------------------------------
LA           ME             MD            MA             MI             MN
- --------------------------------------------------------------------------------
MS           MO             MT            NE             NV             NH
- --------------------------------------------------------------------------------
NJ           NM             NY            NC             ND             OH
- --------------------------------------------------------------------------------
OK           OR             PA            RI             SC             SD
- --------------------------------------------------------------------------------
TN           TX             UT            VT             VA             WA
- --------------------------------------------------------------------------------
WV           WI             WY           PUERTO RICO
- --------------------------------------------------------------------------------
Other (specify):
- --------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
Capital Southwest Venture Corporation

- --------------------------------------------------------------------------------
4. Address of principal  executive  office (number,  street,  city,  state,  zip
code):
12900 Preston Road, Suite 700, Dallas, Texas 75230

- --------------------------------------------------------------------------------



<PAGE>

             Report of Independent Registered Public Accounting Firm


To the Board of Directors of
Capital Southwest Corporation and Subsidiary:

We have examined management's assertion, included in the accompanying Management
Statement Regarding Compliance With Certain Provisions of the Investment Company
Act of 1940, that Capital  Southwest  Corporation and subsidiary (the "Company")
complied with the  requirements  of subsections  (b) and (c) of rule 17f-2 under
the Investment Company Act of 1940 (the "Act") as of March 31, 2006.  Management
is  responsible  for the  Company's  compliance  with  those  requirements.  Our
responsibility  is to express an opinion  on  management's  assertion  about the
Company's compliance based on our examination.

Our examination was conducted in accordance with the standards of Public Company
Accounting Oversight Board (United States) and, accordingly, included examining,
on a test basis, evidence about the Company's compliance with those requirements
and  performing  such  other  procedures  as  we  considered  necessary  in  the
circumstances.  Included among our procedures were the following tests performed
as of March 31, 2006,  and with respect to agreement of security  purchases  and
sales,  for the period from  January 3, 2006 (the date of the last  examination)
through March 31, 2006:

     o    Count and  inspection  of all  securities  located  in the vault of JP
          Morgan Chase Safekeeping Department in New York City, New York.

     o    Confirmation of all securities held by Smith Barney.

     o    Reconciliation  of all such securities to the books and records of the
          Company

     o    Agreement of three  security  purchases,  two  security  sales and one
          repayment  since our last  report  from the books and  records  of the
          Company to the Company's bank statements.

We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal  determination on the Company's  compliance
with specified requirements.

In our opinion,  management's  assertion that Capital Southwest  Corporation and
subsidiary  complied with the  requirements  of subsections  (b) and (c) of rule
17f-2 of the Investment  Company Act of 1940 as of March 31, 2006,  with respect
to  securities  reflected  in the  investment  account of the  Company is fairly
stated, in all material respects.

This report is intended solely for the information and use of management and the
Board of Directors  of Capital  Southwest  Corporation  and  subsidiary  and the
Securities  and Exchange  Commission and is not intended to be and should not be
used by anyone other than these specified parties.


                                                /s/ Grant Thornton LLP
Dallas, Texas
May 2, 2006



<PAGE>

                    Management Statement Regarding Compliance
          With Certain Provisions of the Investment Company Act of 1940




We, as members of management of Capital  Southwest  Corporation  and  subsidiary
(the  "Company"),  are  responsible  for  complying  with  the  requirements  of
subsections  (b) and (c) of rule 17f-2,  "Custody of  Investments  by Registered
Management Investment  Companies," of the Investment Company Act of 1940. We are
also responsible for establishing and maintaining  effective  internal  controls
over compliance with those requirements.  We have performed an evaluation of the
Company's  compliance  with the  requirements of subsections (b) and (c) of rule
17f-2 as of March 31, 2006 and from January 3, 2006 through March 31, 2006.

Based on this evaluation,  we assert that the Company was in compliance with the
requirements of subsections (b) and (c) of rule 17f-2 of the Investment  Company
Act of 1940 as of March 31, 2006,  and from  January 3, 2006  through  March 31,
2006,  with respect to  securities  reflected in the  investment  account of the
Company.




                                                   Capital Southwest Corporation
                                                   [Name of Company]


                                                   /s/  Susan K. Hodgson
                                                   [Name]

                                                   Secretary-Treasurer
                                                   [Title]


                                                   March 31, 2006
                                                   [Date]

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
