SEBI has approved the GARUDA framework to speed up the launch of AIF schemes and cut compliance for certain funds, accelerating onboarding for fund managers and investors after SEBI’s board meeting in June.

GARUDA introduces a new AIF classification system—Large Value Funds, Accredited Investor-only schemes, Angel Funds, and Regular Schemes—and aims to shorten launch delays and lower costs to deploy capital faster.

The reduction mainly affects the post-AIF registration process, though prior AIF registration and approval of the private placement memorandum remain required.

Regular Schemes will be launched within about 10 working days under GARUDA, with merchant bankers continuing to be involved for these schemes.

Overall, the framework seeks to improve ease of doing business, boost efficiency in capital deployment, and shorten time-to-market for AIF products.

Large Value Funds will be available only to accredited investors, with a minimum commitment of Rs 25 crore per investor.

The new rules remove the AI-only waiting period and allow immediate launch after SEBI registration, with PPM filing timing adjusted accordingly.

The move is expected to expedite fund launches and speed capital market entry for new investment schemes while preserving necessary regulatory steps.

SEBI has cut the launching timeline for new AIF schemes to 10 days, down from the earlier 30-day period introduced in April.

A Gazette notification amending AIF Regulations is still awaited, and some provisions may wait for formal notification to take effect.

The GARUDA framework is designed to improve ease of doing business, boost efficiency, and shorten time-to-market, with input from AIPAC and a public consultation.

SEBI expects reduced paperwork, lower compliance costs, and faster launches, benefiting VC, private equity, and angel funds raising from sophisticated investors.