Sebi proposes green-channel route to speed up AIF scheme launches
May 11, 2026
Sebi has proposed easing filing norms and reducing timelines for alternative investment fund scheme launches under a green-channel mechanism
The Securities and Exchange Board of India (Sebi) on Monday proposed easing filing requirements and shortening timelines for alternative investment funds (AIFs) under a “green-channel” mechanism aimed at enabling faster scheme launches.
Under the proposal, AIFs would be allowed to launch new schemes after 10 working days of filing the placement memorandum (PPM) with the regulator through a merchant banker, compared to the existing requirement of 30 days. For first-time schemes, launches would be permitted from the date of registration or after 10 working days from filing the PPM, whichever is later.
For schemes exclusively meant for accredited investors and angel funds, Sebi has proposed permitting direct filing of PPMs without routing them through a merchant banker. In such cases, the merchant banker’s due diligence certificate would be replaced with an undertaking from the chief executive officer and compliance officer of the AIF manager.
These categories would also be allowed to launch schemes immediately upon filing the PPM or obtaining registration, thereby eliminating the waiting period. Angel funds, meanwhile, would be permitted to circulate PPMs to investors for fundraising from the date of registration itself.
The proposals are part of the second phase of reforms following the introduction of a fast-track mechanism in April 2026, under which AIFs were allowed to proceed with scheme launches based on filings and declarations, with Sebi conducting post-facto scrutiny on a sample basis.
The regulator said the proposed relaxations take into account the rapid growth of the AIF industry, rising application volumes, and the nature of accredited investors, who are considered capable of independently assessing investment risks.
Under the proposed framework, Sebi said post-facto scrutiny of scheme documents would continue on a risk-based approach, and regulatory action could be initiated in cases involving disclosure irregularities.
[The Business Standard]
