SEBI makes it easier for alternative investment funds to launch new schemes

SEBI introduced the Green-Channel: AIF Rollout Upon Document Acknowledgement mechanism, known as GARUDA, to ease and expedite the launch process for alternative investment funds.

Under the new system, regular AIF schemes can be launched 10 working days after filing their Private Placement Memorandum (PPM), unless SEBI advises otherwise.

For an AIF's first scheme, launch can occur only after SEBI grants registration or 10 working days after filing, whichever is later.

Regular schemes must file PPMs through a SEBI-registered merchant banker, who must independently exercise due diligence on all disclosures.

AI-only funds (AIOFs), Large Value Funds (LVFs), and Angel Funds are exempt from merchant banker filing and can launch immediately after filing PPMs, subject to registration requirements for first schemes.