Securities and Exchange Board of India approved the GARUDA Framework for Alternative Investment Funds

Securities and Exchange Board of India approved the GARUDA Framework for Alternative Investment Funds

¨     Securities and Exchange Board of India (SEBI) approved the GARUDA Framework for Alternative Investment Funds (AIFs) on 19 June 2026.

¨     The framework was introduced through amendments to the SEBI (Alternative Investment Funds) Regulations, 2012.

¨     GARUDA stands for "Green-Channel: AIF Rollout Upon Document Acknowledgement."

¨     The framework aims to simplify and accelerate the launch process of AIF schemes in India.

¨     Alternative Investment Funds (AIFs) 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.

¨     Under the GARUDA Framework, the launch timeline for Regular AIF Schemes has been reduced from about 30 days to 10 working days.

¨     Accredited Investor-only Schemes and Angel Funds can now be launched immediately after SEBI acknowledges their documents.

¨     The requirement to file the Private Placement Memorandum (PPM) through a SEBI-registered Merchant Banker has been removed for Accredited Investor-only Schemes and Angel Funds.

¨     Instead, the Chief Executive Officer (CEO) or an equivalent officer of the AIF Manager, along with the Compliance Officer, must submit an internal undertaking confirming regulatory compliance.