SEBI's GARUDA Mechanism Speeds Up AIF Scheme Launches

Last updated: 31 July 2026

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The Securities and Exchange Board of India (SEBI) has introduced the GARUDA mechanism to streamline and expedite the launch of schemes by Alternative Investment Funds (AIFs). This new process, detailed in an amendment to the AIF Regulations notified on July 14, 2026, allows AIFs to launch regular schemes after a 10-working-day period following the acknowledgement of their Placement Memorandum (PPM) filing with SEBI, unless otherwise advised. The PPM must be filed via the SEBI Intermediary portal along with required documents and fees.

To,

All Alternative Investment Funds (AIFs)
All Merchant Bankers

Sir/Madam,

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

1.With an objective to ease and expedite the process of launch of scheme/ funds by Alternative Investment Funds (“AIFs”), Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (‘AIF Regulations’), have been amended and notified on July 14, 2026 vide Gazette Notification No.CG-MH-E-14072026-274483.Thebelow mentioned operational modalities,under the captioned GARUDA mechanism,are being specified through this circular:

2.Paragraph2.4 of the SEBI Master Circular for AIFs dated June 03, 2026 (“the Master Circular”)shall be substituted with the following paragraph:

2.4.Modalities for filing of PPM and launch of Regular schemes:

2.4.1.In terms of Regulation 12 of the AIF Regulations, AIFs maylaunch scheme(s) subject to filing of PPM with SEBI through a SEBI registered Merchant Banker. In this context, the following is specifiedwith respect to Regular schemes:
2.4.1.1.AIFs can proceed with launch of their new schemeafter 10 working days of filing of application with SEBI, unless otherwise advised.However,AIFs can proceed with launch of their first schemes from the date of grant of SEBI registration (or) after 10 working days of filing of application with SEBI, whichever is later.
2.4.1.2.PPM of Regular schemes shall be filed, at the time of registration or prior to launch of new scheme, on SEBI Intermediary portal along with the following documents in addition to payment of applicable (scheme) fee:

Official copy of the circular has been attached

FAQ :

The GARUDA mechanism is a new process introduced by SEBI to ease and expedite the launch of schemes by Alternative Investment Funds (AIFs).

The AIF Regulations were amended and notified on July 14, 2026.

AIFs can now launch their regular schemes after 10 working days from the filing of their Placement Memorandum (PPM) with SEBI, provided it has been acknowledged and there are no other advisories.

The PPM for regular schemes should be filed on the SEBI Intermediary portal.

When filing the PPM, AIFs must include all necessary documents and pay the applicable scheme fee.

Yes, AIFs can launch their first schemes from the date of SEBI registration or after 10 working days of filing, whichever is later, unless otherwise advised.