Sebi Proposes ‘GARUDA’ Green-Channel To Cut AIF Scheme Launch Timeline To 10 Days

The Securities and Exchange Board of India (Sebi) proposed a new green-channel mechanism called GARUDA to speed up the launch of Alternative Investment Fund (AIF) schemes and ease fundraising processes for the industry. GARUDA stands for “Green-Channel: AIF Rollout Upon Document Acknowledgement”

In a consultation paper released on May 11, 2026, the regulator said the proposed mechanism is aimed at enabling “faster and efficient deployment of capital by AIFs” as the industry continues to expand rapidly.

The proposal seeks to reduce the waiting period for launching regular AIF schemes from the current 30 days to 10 working days after filing the Placement Memorandum (PPM) with Sebi.

Why Sebi Wants To Introduce GARUDA

Sebi said the AIF industry has grown rapidly over the last five years, leading to a sharp rise in applications for registrations and scheme launches.

The number of AIFs increased from 732 in March 2021 to 1,849 by March 31, 2026, a growth of 135 per cent.

As of December 31, 2025, AIFs had raised cumulative commitments of Rs 15.74 lakh crore, while net investments stood at Rs 6.45 lakh crore.

Sebi said efficient capital deployment has become increasingly important as the industry grows. It added that the review of the current process considered “the sophistication of AIF investors, the expertise of Merchant Bankers in performing due diligence of disclosures in the PPM, and extensive stakeholder consultations”.