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SEBI has recently approved the GARUDA Framework to accelerate the pace of the Alternative Investment Fund (AIF) sector in India. This new framework aims to make the process of launching an AIF scheme faster and easier. Earlier, launching a new scheme took a long time and required several additional compliance steps. The introduction of GARUDA will make the process much easier.
This change will reduce the time to launch a scheme, and compliance costs will also be reduced. Fund managers, venture capital funds, private equity funds, angel funds, and accredited investors will benefit from this change. For businesses exploring AIF registration in India, GARUDA can improve the overall fund launch journey. It will also help to move the AIF ecosystem in India forward more quickly and effectively.
The full form of GARUDA is Green-Channel: AIF Rollout Upon Document Acknowledgement. The SEBI Board approved this framework on June 19, 2026. It aims to make the approval process for launching an AIF scheme faster and easier.
Earlier, it took about 30 days to complete the Placement Memorandum (PPM) verification and various regulatory steps before launching a new AIF scheme. After the launch of GARUDA, certain types of schemes can be launched immediately after submitting the necessary documents and receiving acknowledgement from SEBI. In the case of other regular schemes, the waiting time has also been reduced to 10 working days.
Here, “Green Channel” refers to a fast approval process, where if all the documents are in order, the scheme can be launched without unnecessary delay. This will make the entire process much easier and time-saving for fund managers.
The alternative investment fund sector in India has grown rapidly in the last few years. New funds are coming to the market, and the number of investors is also increasing. But in the old approval process, launching a new scheme used to take a long time. This used to delay the planning and investment activities of the fund managers.
SEBI has launched the GARUDA Framework to reduce these problems. Along with fast approval, responsible AIF compliance measures will be maintained through this. So, it will be easier to do business while protecting the interests of investors.
The Key Reasons for Launching the GARUDA Framework are-
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Under the GARUDA Framework, AIF schemes have been divided into four main categories. There are separate rules for each category.
The new approval process under the GARUDA framework has been made much simpler than before. The entire process can be understood in the following steps-
The Fund Manager will first prepare all the necessary documents and the Placement Memorandum (PPM) of the scheme.
The PPM will be submitted to SEBI as per the applicable rules.
SEBI will provide an acknowledgement of receipt of the documents.
AI-only Schemes and Angel Funds can be launched immediately after receiving the acknowledgement.
Regular schemes can be launched within a maximum of 10 working days after acknowledgement when SEBI does not raise any objection.
Earlier, the participation of SEBI-registered Merchant Bankers was mandatory for verification and submission of Placement Memorandum (PPM) in almost all AIF schemes. They would review the documents and ensure compliance.
After the GARUDA Framework, this obligation has been removed for AI-only Schemes and Angel Funds. Now only fund managers and designated officers can provide self-certification in these schemes.
However, the role of the Merchant Banker will remain the same in Regular Schemes. This change will reduce compliance costs in certain schemes, save time in the submission of documents, and enable faster launch of schemes.
The GARUDA framework can bring several positive changes to the AIF sector in India. Some of the important implications are given below-
Have a look at the key benefits of the GARUDA framework-
The key compliance responsibilities under GARUDA are:
Although the GARUDA Framework provides an opportunity for quick approval, failure to follow the rules can lead to problems in the future. So, the following mistakes should be avoided.
The GARUDA Framework can help make India’s alternative investment market faster and more efficient. These new schemes are coming to the market faster and increasing investment opportunities. In addition, the entire process will be easier for fund managers.
The positive impacts are-
While there is an opportunity for faster approvals under the GARUDA Framework, preparing the right documents and complying with SEBI rules is still very important. Enterslice can provide various types of professional support so that businesses can reduce compliance risks.
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SEBI’s GARUDA Framework is a procedural reform for the AIF industry in India. This new framework has reduced the time to launch a scheme and simplified the compliance process. It also enhances the accountability of fund managers and protected the interests of investors.
This change will facilitate faster fundraising, create new investment opportunities, and advance India’s alternative investment ecosystem. However, it is important to comply with all regulatory conditions properly to avail the benefits of faster approval.
Enterslice can help institutions looking to form new AIFs or manage existing funds more easily by managing AIF registration, regulatory compliance, documentation, and ongoing legal support. So, contact us today for the best support in managing AIFs.
The GARUDA framework is a new mechanism launched by SEBI. Its objective is to create an opportunity for the rapid launch of Alternative Investment Fund (AIF) schemes. Under this mechanism, certain types of schemes get approval in less time, and the requirement to file through a merchant banker has also been waived. So, the approval process has become much easier and faster than before.
SEBI launched this framework because it took a lot of time to launch new AIF schemes. This delayed the investment planning and fundraising of fund managers. Through GARUDA, an attempt has been made to reduce this delay, simplify unnecessary compliance steps, and improve ease of doing business. Investor protection has also been maintained as before.
As per the GARUDA Framework, Accredited Investor-only (AI-only) Schemes and Angel Funds can be launched only after receiving document acknowledgement from SEBI. There is no need to submit a Placement Memorandum through a merchant banker for these schemes. However, the fund manager and designated officers will have to give their own self-certification, and all compliances will have to be followed properly.
Earlier, it took about 30 days to launch a Regular AIF Scheme. After the launch of the GARUDA Framework, this time limit has been reduced to 10 working days. If SEBI does not raise any objection within this time, then the scheme can be launched. However, the role of a merchant banker is still mandatory in such schemes.
No. The GARUDA Framework has not reduced investor protection. It has reduced the approval time and increased the responsibilities of fund managers. Now, fund managers and concerned officers will have to be accountable for the accuracy of the information submitted and the documents published. The importance of regulatory oversight and compliance remains the same even though the process is launched quickly.
The GARUDA Framework will enable Venture Capital and Private Equity Funds to launch new schemes much faster. This will help to complete fundraising quickly and start investing on time. The possibility of missing out on good investment opportunities will also be reduced due to less waiting. In addition, compliance costs may also be reduced, as there is no need for a Merchant Banker.
SEBI has already approved the GARUDA Framework. However, the revised SEBI (Alternative Investment Funds) Regulations will be fully effective after the official publication of the Gazette Notification. The date of implementation of the new rules will be clear only after that notification is issued. Therefore, fund managers should keep an eye on the latest government notifications.
Under the GARUDA Framework, the primary legal responsibility for the accuracy of the documents will lie with the fund's leadership. The AIF manager’s CEO, Compliance Officer, and other designated officials will have to provide the required undertaking/self-certification. If any information is incorrect, incomplete, or misleading, then the concerned officers may be held accountable for it. So, special caution is necessary while preparing the documents.
Earlier, the investment process used to slow down while waiting for regulatory approvals. The GARUDA Framework has reduced the waiting time. So, funds will be able to raise money quickly and invest in startups and other private companies. This will create the possibility of new businesses getting finance faster and the startup ecosystem becoming stronger.
Enterslice can provide professional support to businesses in various SEBI compliance areas, starting from AIF registration. The firm can assist with Placement Memorandum (PPM) preparation, regulatory documentation review, legal and secretarial compliance and ongoing compliance management, enabling businesses to more easily manage their AIFs in compliance with regulations.
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