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SEBI Halves AIF Launch Time, Fuels Startup Growth
19 Jun
Summary
- SEBI slashes AIF scheme launch waiting period from 30 days to 10.
- New GARUDA framework speeds up capital deployment into startups.
- Accredited Investors can submit placement memorandums directly.
The Securities and Exchange Board of India (SEBI) has approved a streamlined process for launching Alternative Investment Fund (AIF) schemes. The new mechanism, called GARUDA, reduces the typical waiting period from 30 days to 10 working days, facilitating faster deployment of capital into key sectors.
This initiative is designed to boost ease of doing business and enable fund managers to respond more efficiently to market opportunities. For newly registered AIFs, launch eligibility commences upon registration or after the 10-working-day period, whichever is later.
SEBI has also introduced a direct submission route for schemes exclusively for Accredited Investors and Angel Funds. Under this, AIF managers, not merchant bankers, will hold responsibility for regulatory compliance, confirming adherence to AIF regulations.
This accelerated process does not compromise oversight. SEBI will continue to conduct risk-based post-launch scrutiny, ensuring regulatory standards are maintained while supporting India's maturing AIF ecosystem.
