SEBI GARUDA: Faster AIF Scheme Launches
By Business Desk
SEBI introduces GARUDA, a new mechanism to expedite Alternative Investment Fund (AIF) scheme launches, streamlining regulatory processes for faster market entry.
The Securities and Exchange Board of India (SEBI) has unveiled the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) mechanism to significantly speed up the launch of schemes by Alternative Investment Funds (AIFs). This new process was officially notified on July 14, 2026.
Understanding GARUDA’s Purpose
GARUDA directly amends the SEBI (Alternative Investment Funds) Regulations, 2012, aiming to simplify the regulatory pathway for AIFs. Its core objective is to accelerate the introduction of new investment schemes into the market, fostering greater efficiency.
Expedited Launch for Regular Schemes
Under the GARUDA framework, AIFs can now launch their regular schemes after a specific waiting period. This process begins with filing the Placement Memorandum (PPM) with SEBI, followed by the regulator’s acknowledgement.
AIFs must then observe a period of 10 working days. The scheme can be launched after this duration, provided SEBI does not issue any contrary advice during this timeframe.
First Scheme Launch Conditions
The mechanism also clarifies the timeline for an AIF’s inaugural scheme, ensuring a structured entry for new funds into the market. A first scheme can be launched based on the later of two specific dates.
These dates are either the date of SEBI registration for the AIF or 10 working days after the application for the scheme has been officially filed. This ensures a minimum review period before market entry.
Mandatory Submission Process
To utilize this streamlined process, AIFs must adhere to specific submission protocols, with the Placement Memorandum being a central requirement. The PPM for regular schemes must be submitted via the SEBI Intermediary portal.
Crucially, all necessary supporting documents must accompany the submission, and the applicable scheme fee must also be included. This ensures completeness for the expedited regulatory review.
This strategic regulatory amendment by SEBI is designed to simplify and accelerate the overall process for Alternative Investment Funds to introduce new schemes or funds, fostering a more agile investment environment for market participants.