SEBI's GARUDA allows AIF launches 10 working days after PPM
SEBI's board approved a new system called GARUDA, which lets regular Alternative Investment Fund (AIF) schemes launch in just 10 working days after filing the Placement Memorandum (PPM) with SEBI through a merchant banker, unless the regulator advises otherwise, while the first scheme of a newly registered AIF may launch from the date of registration or after 10 working days from filing the PPM, whichever is later.
The idea is to help get new investment opportunities off the ground faster, while still keeping things safe and regulated.
SEBI streamlines compliance for new AIFs
With GARUDA, the first scheme of a newly registered AIF may be launched from the date of grant of registration or after 10 working days from filing the PPM, whichever is later.
Instead of lengthy due diligence, top officials just need to confirm compliance.
SEBI will keep an eye on things through post-launch reviews to make sure rules are followed.
Plus, launching schemes for accredited investors and angel funds is easier now: no merchant banker is required to file paperwork.
This should mean more options and less hassle for both fund managers.