SEBI Proposes 10-Day AIF Scheme Launch Under GARUDA

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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