SEBI proposes to reduce AIF scheme launch time to 10 days from current 30
This story was originally published at 20:37 IST on 11 May 2026
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MUMBAI – The Securities and Exchange Board of India in a consultation paper issued Monday proposed to reduce the time period for launch of schemes by alternative investment funds to 10 working days, from current 30 days, after the application is filed with the regulator through a merchant banker. The regulator has invited comments on the same by Jun. 1.
"For Regular schemes: To facilitate launch of new schemes by AIFs after 10 working days of filing the application with SEBI through a Merchant Banker, unless otherwise advised and to facilitate launch of first schemes from the date of grant of SEBI registration (or) after 10 working days of filing of application with SEBI, whichever is later," one of the four proposals in the note said.
The paper also proposed allowing managers of alternative investment funds for accredited investor-only schemes and angel funds to directly file private placement memorandums with the regulator instead of through a merchant banker.
It proposed replacing the Merchant Banker Due Diligence certificate required for filing private placement memorandums with an undertaking by the chief executive officer of the manager of the alternative investment fund and compliance officer of the manager of the fund.
The paper also proposed steps to facilitate the immediate launch of alternative investment funds for accredited investor-only schemes. It proposed that alternative investment funds can launch their new schemes and circulate the private placement memorandums to their investors for funds after 10 working days of filing of application with SEBI, down from the current 30-day rule.
In the case of the first scheme of alternative investment funds as well, the paper mooted that alternative investment funds can launch such schemes from the date of grant of SEBI registration or after 10 working days of filing the application with SEBI, whichever is later. End
Reported by Cassandra Carvalho and Nandini Sinha
Edited by Tanima Banerjee
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