SEBI Approves GARUDA Green-Channel Framework for AIFs

The Securities and Exchange Board of India (SEBI) approved the GARUDA framework for Alternative Investment Funds (AIFs) on 19 June 2026 through amendments to the SEBI (Alternative Investment Funds) Regulations, 2012. GARUDA stands for “Green-Channel: AIF Rollout Upon Document Acknowledgement” and applies to the launch process of AIF schemes in India.

Alternative Investment Funds in India

Alternative Investment Funds are privately pooled investment vehicles regulated under the SEBI (Alternative Investment Funds) Regulations, 2012. AIFs are classified into Category I, Category II, and Category III, based on their investment strategy and regulatory treatment.

GARUDA Launch Framework

Under GARUDA, the launch timeline for Regular Schemes of AIFs has been reduced to 10 working days from the earlier waiting period of about 30 days. Accredited Investor-only schemes and Angel Funds can launch immediately after SEBI acknowledges their documents.

Documentation and Compliance Changes

For Accredited Investor-only schemes and Angel Funds, the requirement to file Private Placement Memorandums through a SEBI-registered merchant banker has been removed. Instead, the AIF manager’s Chief Executive Officer or an equivalent officer, along with the Compliance Officer, must submit an internal undertaking on regulatory compliance.

Important Facts for Exams

• SEBI is the statutory regulator for securities markets in India under the SEBI Act, 1992.
• Private Placement Memorandum is the principal disclosure document for an AIF scheme.
• Angel Funds are a sub-category of AIFs that pool money from angel investors for investment in start-ups.
• Accredited Investor-only schemes are designed for investors who meet prescribed financial eligibility criteria.

Policy Process and Consultation

SEBI introduced the GARUDA mechanism through a consultation paper on 11 May 2026. The final framework incorporates feedback from the Alternative Investment Policy Advisory Committee and public consultation.