SEBI launches GARUDA framework to speed AIF fund approvals

The Securities and Exchange Board of India (SEBI) issued an operational framework called Green‑Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) to simplify and accelerate the launch of Alternative Investment Fund (AIF) schemes. Under the new rules, regular AIF schemes may be launched within ten working days of filing their private placement memorandum (PPM) with SEBI through a registered merchant banker, unless the regulator intervenes. Newly registered AIFs can start their first scheme after SEBI registration or after the ten‑day period, whichever is later.

SEBI also introduced lighter treatment for Accredited Investor‑only funds, Large Value Funds and Angel funds. These categories are exempt from filing the PPM through a merchant banker and can launch immediately after filing the PPM with SEBI; first‑time LVFs and AI‑only funds may begin after registration, while Angel funds can circulate their PPM from the registration date. Merchant bankers must conduct independent due‑diligence and certify disclosures, and SEBI added disclaimer clauses clarifying that filing does not constitute regulatory approval. New naming requirements mandate “AI‑only fund” or “AIOF” in AI‑only fund names and the suffix “LVF” for Large Value Funds.