Securities and Exchange Board of India (SEBI) proposes GARUDA mechanism for Alternative Investment Funds (AIF)

Key facts

• The Securities and Exchange Board of India (SEBI) proposed the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) to reduce the scheme launch period from 30 working days to 10 working days after filing Placement Memorandums (PPMs).
• For the first scheme of an Alternative Investment Fund (AIF), launch is permitted from the date of registration or 10 working days after filing the application, whichever is later.
• As of March 31, 2026, the number of registered AIFs rose to 1,849, with cumulative commitments of ₹15.74 lakh crore and net investments of ₹6.45 lakh crore as of December 31, 2025.
• For Angel Funds and Accredited Investor-only (AI-only) schemes, SEBI proposed allowing direct PPM filing by fund managers and immediate launch upon filing without a review period.
• The number of accredited investors reached 2,773 as of April 30, 2026, holding AIF units with a par value of approximately ₹1.91 lakh crore as of December 31, 2025.