The Securities and Exchange Board of India (SEBI) on July 30, 2026, issued a circular regarding Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) Mechanism for Processing of Placement Memorandum of Alternative Investment Funds (AIFs) filed with SEBI.
The following has been stated:-
•SEBI has introduced the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) mechanism to simplify and expedite the launch of Alternative Investment Fund (AIF) schemes by streamlining the Placement Memorandum (PPM) filing process.
•Under the revised framework, Regular AIF schemes may be launched after 10 working days of filing the PPM with SEBI through a registered Merchant Banker, subject to prescribed due diligence, disclosures, and certifications.
•AI-only Funds, Large Value Funds (LVFs), and Angel Funds have been granted regulatory relaxations by exempting them from Merchant Banker filing requirements, allowing them to launch schemes immediately upon filing the PPM with SEBI or from the date of SEBI registration for their first schemes, based on undertakings from the CEO and Compliance Officer.
•The circular also mandates standard disclaimer clauses, prescribes naming conventions for AI-only Funds and LVFs, clarifies that PPM filing does not constitute SEBI approval, and places responsibility for the accuracy and completeness of disclosures on the Manager and, where applicable, the Merchant Banker.
•These provisions have come into force with immediate effect and apply to all PPMs filed from the date of notification of the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026.
[Circular No.: HO/19/19/11(2)2026-AFD-RAC2/I/17617/2026]
