finalise and implement the framework. Market experts believe this could be one of the most important reforms for India’s alternative investment space in recent years.
FAQ (FREQUENTLY ASKED QUESTIONS)
Q1: What does GARUDA stand for in SEBI’s proposal?
A: Green-Channel: AIF Rollout Upon Document Acknowledgement.
Q2: How many days do eligible AIF schemes need to wait under the proposed GARUDA rule?
A: 10 working days (unless SEBI raises objections).
Q3: When can Accredited Investor only schemes and Angel Funds launch under the new framework?
A: They may be allowed to launch immediately after filing the PPM.
Q4: How many registered AIFs were there in India as of 31 March 2026?
A: 1,849 registered AIFs.
Q5: What is the last date to send public feedback on the GARUDA proposal?
A: 1 June 2026.
EXAM-FOCUSED POINTS
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Regulator: Securities and Exchange Board of India (SEBI)
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Proposal name: GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement)
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Purpose: Speed up launch of AIF schemes; improve ease of doing business
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Current wait time: 30 days after filing Placement Memorandum (PPM)
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Proposed wait time for eligible schemes: 10 working days (unless SEBI objects)
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Special benefit: Accredited Investor only schemes & Angel Funds may launch immediately after filing
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Accredited investors definition: Individuals/entities meeting SEBI’s income or net worth criteria
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Accredited investors count: 649 (Apr 2025) → 2,773 (Apr 2026)
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AIF investments by accredited investors: ₹1.91 lakh crore (~30% of total AIF investments)
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Total AIF commitments (Dec 2025): ₹15.74 lakh crore
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Net AIF investments (Dec 2025): ₹6.45 lakh crore
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AIF categories: Category I (VC, infra, startup funds); Category II (private equity, debt); Category III (hedge funds)
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Public feedback deadline: 1 June 2026
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SEBI oversight: Post facto scrutiny; regulatory action for violations
Month: Current Affairs - May 12, 2026
Category: SEBI-GARUDA