Venture Intelligence (TSJ Media Pvt. Ltd.)
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SEBI’s ‘GARUDA’ framework eases key bottlenecks for AIFs
The Securities and Exchange Board of India (SEBI) has introduced the Green-Channel: AIF Rollout Upon Document Acknowledgement (GARUDA) framework to streamline the launch of Alternative Investment Funds (AIFs). The mechanism aims to reduce approval timelines and placing greater emphasis on disclosures and the accountability of fund managers. This update marks a shift from pre-launch scrutiny toward a regime based on post-facto supervision and enforcement.The GARUDA framework creates approval pathways based on the sophistication of investors rather than the fund category. Under this mechanism, launch timelines for regular schemes catering to non-accredited investors have been reduced to 10 working days after filing, provided SEBI does not raise objections. Schemes dedicated to accredited investors and angel funds can now be launched almost immediately after filing their private placement memorandums (PPM). These changes replace the previous requirement for merchant banker due diligence with undertakings from the AIF manager’s CEO or compliance officer.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.