Securities and Exchange Board of India (SEBI) approves GARUDA mechanism to fast-track AIF scheme launches

Key facts

• The Securities and Exchange Board of India (SEBI) approved the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) mechanism to accelerate the launch of Alternative Investment Fund (AIF) schemes.
• The decision was implemented through amendments to the SEBI Alternative Investment Funds Regulations, 2012, at a board meeting held on 19 June 2026.
• Under the GARUDA mechanism, the launch timeline for non-accredited investor schemes has been reduced to 10 working days, excluding Large Value Funds (LVFs), Accredited Investor-only schemes, and Angel Funds.
• SEBI exempted Angel Funds and Accredited Investor-only schemes from the requirement of filing the Private Placement Memorandum (PPM) through a merchant banker.
• The framework was discussed by the Alternative Investment Policy Advisory Committee (AIPAC) and finalised following a public consultation process.