SEBI Proposes 10-Day AIF Scheme Launch Under GARUDA

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  • Last Updated on 13 May, 2026

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GARUDA mechanism AIF SEBI

Consultation Paper; Dated: 11.05.2026

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a significant reduction in the timeline for launching Alternative Investment Fund (AIF) schemes through a new mechanism titled – GARUDA

Green Channel – AIF Rollout Upon Document Acknowledgement

1. Proposed Reduction in Launch Timeline

  • Present framework AIF schemes can generally be launched after 30 days from filing the Private Placement Memorandum (PPM)
  • Proposed framework under GARUDA timeline reduced to 10 working days from filing of PPMs

2. Immediate Fundraising for Certain Categories

SEBI has further proposed that:

  • Angel Funds, and
  • Schemes exclusively for Accredited Investors

May commence fundraising immediately upon filing documents with SEBI

3. Objective of the Proposal

The GARUDA mechanism aims to:

  • Accelerate scheme launches and capital mobilisation
  • Improve ease of doing business for fund managers
  • Enhance efficiency in the AIF ecosystem

4. Expected Impact

The proposal is expected to:

  • Reduce regulatory turnaround time
  • Facilitate quicker fund deployment and investor onboarding
  • Encourage growth in alternative investment markets

5. Public Consultation

  • SEBI has invited comments from stakeholders
  • Last date for submission 01 June 2026

6. Conclusion

The proposed GARUDA framework reflects SEBI’s move towards a faster and more facilitative regulatory regime for AIFs, balancing efficiency with oversight while promoting ease of fundraising and market development.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied