TaxTMI 
TaxTMI 
‘Green-Channel: AIF Rollout Upon Document Acknowledgement’ (GARUDA) Mechanism for Processing of Placement Memorandum of Alternative Investment Funds (AIFs) filed with SEBI
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ("AIFs"), Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 ('AIF Regulations'), have been amended and notified on July 14, 2026 vide Gazette Notification No. CG-MH-E-14072026-274483. The below mentioned operational modalities, under the captioned GARUDA mechanism, are being specified through this circular: 2. Paragraph 2.4 of the SEBI Master Circular for AIFs dated June 03, 2026 ("the Master Circular") shall be substituted with the following paragraph: 2.4. Modalities for filing of PPM and launch of Regular schemes: 2.4.1. In terms of Regulation 12 of the AIF Regulations, AIFs may launch scheme(s) subject to filing of PPM with SEBI through a SEBI registered Merchant Banker. In thi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ures and provide the due diligence certificate. The Merchant Banker appointed for filing of PPM shall not be an associate of the AIF, its sponsor, manager or trustee. 2.4.1.4. The details of the Merchant Banker shall be disclosed in the PPM. The following disclaimer clause shall be included in the PPMs of all Regular schemes: "1. Merchant Banker viz., has independently exercised due-diligence regarding the information given in the placement memorandum, including the veracity and adequacy of disclosures made therein. Merchant Banker has certified in its Due-Diligence Certificate dated ______ submitted to SEBI that the disclosures made in the placement memorandum are true, fair and adequate to enable the investors to make an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....egular schemes, as well as in declarations submitted by them. In case of any irregularity or lapse in the PPM, concerned entities shall be liable for action. 3. Paragraph 2.5 of the Master Circular shall be substituted with the following paragraph: 2.5. Modalities for filing of PPM and launch of schemes of AI only Funds, LVFs and Angel Funds: 2.5.1. Pursuant to introduction of framework for "Accredited Investors" in the securities market, AIF Regulations have been amended to provide certain relaxations from regulatory requirements to - (i) AIF schemes limited exclusively to Accredited Investors only (AI only funds) and (ii) 'Large Value Fund for Accredited Investors' (LVF), an AI only fund, where each investor invests n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Annexure 7. 2.5.2.4. The following disclaimer clause shall be included in the PPMs of all AI only funds, LVFs and Angel Funds: "1. The Manager of the AIF viz., has independently exercised due-diligence regarding the information given in the placement memorandum, including the veracity and adequacy of disclosures made therein. Chief Executive Officer of the Manager of the AIF (or person holding equivalent role or position depending on the legal structure of Manager) and Compliance Officer of Manager of the AIF have certified in their undertaking dated ______ submitted to SEBI that the disclosures made in the placement memorandum are true, fair and adequate to enable the investors to make an informed decision with respect ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hall be liable for action. 2.5.2.6. Any new scheme proposed to be launched as an AI only scheme shall have the words 'AI only fund' or 'AIOF' added to the scheme name at the end (For example, 'Xyz AI only fund' or 'Xyz AIOF'). 2.5.2.7. Any new scheme proposed to be launched as an LVF shall have the word 'LVF' added to the scheme name at the end (For example, 'Abc LVF'). 4. The following paragraph shall be inserted after paragraph 2.6 of the Master Circular: "2.7. Explanation -For the purpose of the aforementioned paragraphs 2.4 to 2.6: 2.7.1 'Regular schemes' shall mean schemes other than Large Value Fund for Accredited Investors (LVF), Accredited Investor Only Fund ('AI only fund') and Angel Funds. ....