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Regulations India Jul 30, 2026

SEBI's GARUDA framework fast-tracks AIF/VC fund launches to 10 working days

SEBI's GARUDA framework fast-tracks AIF/VC fund launches to 10 working days

On 30 July 2026 SEBI operationalised the 'Green-Channel: AIF Rollout Upon Document Acknowledgement' (GARUDA) mechanism, following the AIF (Second Amendment) Regulations notified 14 July 2026. Regular Alternative Investment Fund schemes can now launch just 10 working days after filing their Placement Memorandum via a registered merchant banker, instead of waiting for explicit SEBI approval. Accredited-Investor-only Funds, Large Value Funds and Angel Funds are exempt from the merchant-banker requirement and can launch immediately after filing.

Why this matters for founders

Founders raising from domestic VC/angel funds should see faster fund closes and quicker capital deployment, so time follow-ups with investors whose new AIF vehicles can now spin up in days. If you run or plan a fund vehicle, use the Angel Fund exemption to launch without the merchant-banker step.

Source: Business Today

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