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The Securities and Exchange Board of India (SEBI) has approved the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) mechanism to accelerate the launch of Alternative Investment Fund (AIF) schemes. The decision was taken through amendments to the SEBI (Alternative Investment Funds) Regulations, 2012 at the regulator's board meeting held on 19 June 2026. SEBI said the move is aimed at reducing launch timelines and enabling faster deployment of capital by AIFs. The initiative builds on the regulator's earlier measures announced on 30 April 2026 to streamline scheme launches. Under the GARUDA mechanism, the launch timeline for non-accredited investor schemes, excluding Large Value Funds (LVFs), Accredited Investor-only schemes and Angel Funds, has been reduced to 10 working days. The regulator said the move will allow regular AIF schemes to reach the market faster than under the earlier framework. SEBI has also exempted Accredited Investor-only schemes and Angel Funds from the requirement of filing the Private Placement Memorandum (PPM) through a merchant banker. Such schemes will now be permitted to launch immediately upon obtaining SEBI registration or filing the PPM with the regulator. SEBI said the framework is intended to improve ease of doing business, enhance efficiency in capital deployment and reduce time-to-market for AIF products. The proposals were discussed by the Alternative Investment Policy Advisory Committee (AIPAC) and were finalised after a public consultation process. Powered by Capital Market - Live News
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