SEBI Proposes “GARUDA” Fast-Track Framework To Cut AIF Launch Timeline To 10 Days

The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing a new fast-track mechanism titled “Green-Channel: AIF Rollout Upon Document Acknowledgement” (GARUDA) for processing Placement Memorandums (PPMs) filed by Alternative Investment Funds (AIFs).

SEBI noted that the AIF industry has been growing rapidly and that the inflow of applications for registration and scheme launches has increased significantly. The proposals aim to facilitate faster and more efficient launch of AIF schemes.

Under the proposed framework, SEBI proposes to reduce the timeline for launching regular AIF schemes from 30 days to 10 working days after applicants file the application with SEBI, unless SEBI specifies otherwise.

It also proposes to allow Accredited Investor-only (AI-only) schemes and Angel Funds to file Placement Memorandums directly with SEBI instead of routing them through Merchant Bankers.

Further, the regulatory body proposes to replace Merchant Banker due diligence certificates with undertakings from the Chief Executive Officer and Compliance Officer of the AIF manager.

The consultation paper also proposes immediate launch of first schemes for AI-only AIFs and immediate circulation of Placement Memorandums by Angel Funds from the date SEBI grants registration.

SEBI stated that it will continue to undertake post-facto scrutiny of scheme documents on a sample basis depending on risk assessment and specified criteria.

Public comments on the proposals are invited until 1 June 2026.