**AIF Managers and Sponsors** of Regular schemes, AI only schemes, and Angel Funds. **Merchant Bankers** involved in the due diligence and filing of Placement Memorandums (PPM). **Accredited Investors (AIs)** and other sophisticated investors in AIFs.

The consultation paper proposes the following modifications to the scheme launch process: **For Regular Schemes:** **Timeline Reduction:** Facilitate the launch of new schemes after 10 working days of filing the application with SEBI through a Merchant Banker, unless otherwise advised. **First Schemes:** Facilitate launch from the date of SEBI registration or 10 working days after filing the application, whichever is later. **For AI Only Schemes:** **Direct Filing:** Allow Managers to file the PPM directly with SEBI instead of through a Merchant Banker. **Documentation:** Replace the Merchant Banker Due Diligence certificate with an Undertaking signed by the Manager's CEO (or equivalent) and Compliance Officer. **Immediate Launch:** Facilitate immediate launch of the first scheme from the date of SEBI registration and immediate launch of new schemes upon filing the PPM with the required Undertaking. **For Angel Funds:** **Direct Filing:** Allow Managers to file the PPM directly with SEBI instead of through a Merchant Banker. **Documentation:** Replace the Merchant Banker Due Diligence certificate with an Undertaking signed by the Manager's CEO (or equivalent) and Compliance Officer. **Immediate Circulation:** Facilitate immediate circulation of the PPM to investors for soliciting funds from the date of SEBI registration.

Consultation on ‘Green-Channel: AIF Rollout Upon Document Acknowledgement’ (GARUDA) Mechanism for Processing of Placement Memorandum of Alternative Investment Funds (AIFs) filed with SEBI.

Quick summary

SEBI has proposed the GARUDA mechanism to accelerate the launch of Alternative Investment Fund (AIF) schemes. The proposal seeks to reduce the filing timeline for Regular schemes to 10 working days and allow AI only schemes and Angel Funds to file directly with SEBI, bypassing Merchant Bankers in specific instances.

Who is affected

AIF Managers and Sponsors of Regular schemes, AI only schemes, and Angel Funds.
Merchant Bankers involved in the due diligence and filing of Placement Memorandums (PPM).
Accredited Investors (AIs) and other sophisticated investors in AIFs.

What changes

The consultation paper proposes the following modifications to the scheme launch process:

For Regular Schemes:

Timeline Reduction: Facilitate the launch of new schemes after 10 working days of filing the application with SEBI through a Merchant Banker, unless otherwise advised.
First Schemes: Facilitate launch from the date of SEBI registration or 10 working days after filing the application, whichever is later.

For AI Only Schemes:

Direct Filing: Allow Managers to file the PPM directly with SEBI instead of through a Merchant Banker.
Documentation: Replace the Merchant Banker Due Diligence certificate with an Undertaking signed by the Manager's CEO (or equivalent) and Compliance Officer.
Immediate Launch: Facilitate immediate launch of the first scheme from the date of SEBI registration and immediate launch of new schemes upon filing the PPM with the required Undertaking.

For Angel Funds:

Direct Filing: Allow Managers to file the PPM directly with SEBI instead of through a Merchant Banker.
Documentation: Replace the Merchant Banker Due Diligence certificate with an Undertaking signed by the Manager's CEO (or equivalent) and Compliance Officer.
Immediate Circulation: Facilitate immediate circulation of the PPM to investors for soliciting funds from the date of SEBI registration.

Action items

Submit Comments: Stakeholders are invited to submit comments or suggestions on these proposals.
Submission Method: Comments must be submitted exclusively via the online web-based form provided by SEBI.

Key dates-deadlines

Issue Date: May 11, 2026
Deadline for Public Comments: June 01, 2026

Source reference

Consultation paper on ‘Green-Channel: AIF Rollout Upon Document Acknowledgement’ (GARUDA) Mechanism for Processing of Placement Memorandum of Alternative Investment Funds (AIFs) filed with SEBI, May 11, 2026.