To accelerate the introduction of Alternative Investment Fund (AIF) schemes, the Securities and Exchange Board of India (SEBI) has proposed a “green-channel” approach that shortens approval times and simplifies compliance requirements for accredited-investor funds.
Instead of the present 30-day period, conventional AIF schemes might be launched within 10 working days of filing placement documents with SEBI under the proposed “Green-Channel: AIF Rollout Upon Document Acknowledgment” (GARUDA) framework. Launches of new schemes will be allowed either on the date of SEBI registration or 10 working days after filing, whichever comes first.
Additionally, the SEC has suggested a less stringent framework for angel funds and accredited investor-only schemes. Managers of these funds would not need to go through merchant bankers in order to submit placement memorandums to SEBI.
Furthermore, commitments from the chief executive officer and compliance officer of the AIF manager would take the place of merchant banker due-diligence certificates. Following the filing of paperwork with the regulator, these schemes could be implemented right away.
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