SEBI’s GARUDA Proposal: New Rule to Launch Investment Schemes in Just 10 Days

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

• Regulator:  Securities and Exchange Board of India (SEBI)

• Proposal name:  GARUDA (Green-Channel: AIF Rollout Upon Document Acknowledgement)

• Purpose:  Speed up launch of AIF schemes; improve ease of doing business

• Current wait time:  30 days after filing Placement Memorandum (PPM)

• Proposed wait time for eligible schemes:  10 working days (unless SEBI objects)

• Special benefit:  Accredited Investor only schemes & Angel Funds may launch immediately after filing

• Accredited investors definition:  Individuals/entities meeting SEBI’s income or net worth criteria

• Accredited investors count:  649 (Apr 2025) → 2,773 (Apr 2026)

• AIF investments by accredited investors:  ₹1.91 lakh crore (~30% of total AIF investments)

• Total AIF commitments (Dec 2025):  ₹15.74 lakh crore

• Net AIF investments (Dec 2025):  ₹6.45 lakh crore

• AIF categories:  Category I (VC, infra, startup funds); Category II (private equity, debt); Category III (hedge funds)

• Public feedback deadline:  1 June 2026

• SEBI oversight:  Post facto scrutiny; regulatory action for violations