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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