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SEBI clears 'GARUDA' green-channel to fast-track Alternative Investment Fund launches

Saturday, 20 June 2026· 5 min read·Source: Business Standard

At its board meeting on June 19, 2026, the Securities and Exchange Board of India (SEBI) approved a new green-channel mechanism named GARUDA to fast-track the launch of Alternative Investment Fund (AIF) schemes. Under the framework, eligible funds will be allowed to begin fundraising within 10 working days of filing their placement memorandum, against the current waiting period of about 30 days. The reform, made through amendments to the SEBI (Alternative Investment Funds) Regulations, is aimed at helping fund managers deploy capital faster into start-ups, private credit, infrastructure and other opportunities. It was part of a wider SEBI board package that also revived open-market share buybacks and eased intraday borrowing for mutual funds.

Key Facts & Details

8 points

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SEBI approved the GARUDA green-channel mechanism for Alternative Investment Funds (AIFs) at its June 19, 2026 board meeting.
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Eligible AIFs can start fundraising within 10 working days of filing the placement memorandum, down from about 30 days.
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The change was made via amendments to the SEBI (Alternative Investment Funds) Regulations.
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The aim is faster capital deployment into start-ups, private credit and infrastructure.
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It was part of a broader SEBI board package that also reintroduced open-market share buybacks from August 1, 2026.

Deep Dive

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AIFs are privately pooled investment vehicles (venture capital, private equity, hedge funds, etc.) registered with SEBI.
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A 'green channel' speeds up regulatory clearance for entities that meet defined eligibility norms.
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SEBI is chaired by Tuhin Kanta Pandey, who heads the board that cleared the reform.

Exam Focus

What is the name of the SEBI mechanism approved in June 2026 to fast-track AIF scheme launches?

Exam Relevance & Angle

Named SEBI frameworks and capital-market reforms are classic Banking & Financial Awareness questions; GARUDA, AIF norms and SEBI's regulatory role are exactly the kind of specific 'fill-the-fact' items asked in SBI/IBPS PO Mains and RBI Grade B.

Target Exams

SBI POIBPS PORBI Grade BNABARD Grade A

Background & Context

The Securities and Exchange Board of India (SEBI), set up under the SEBI Act, 1992, is India's capital-markets regulator. Alternative Investment Funds (AIFs) are privately pooled funds — covering venture capital, private equity, debt and hedge strategies — registered under the SEBI (AIF) Regulations, 2012 and classified into Category I, II and III. Before launching a scheme, an AIF files a placement memorandum with SEBI and waits for clearance. By cutting that wait through a 'green channel' for eligible funds, SEBI is trying to deepen private capital flows while retaining oversight. SEBI's board, chaired by the SEBI Chairperson, periodically clears such regulatory amendments.