SEBI Proposes Cutting AIF Scheme Launch wait to Ten days

• 12 May 2026
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On 11 May 2026, the Securities and Exchange Board of India (SEBI) proposed certain major reforms that are intended to simplify the launch process for Alternative Investment Funds (AIFs) schemes by reducing timelines as well as easing compliance requirements. This includes reducing timelines and easing compliance requirements. 

Current Mechanism under SEBI AIF Regulations, 2012

Currently, under the SEBI Alternative Investment Funds Regulations 2012, AIFs are mandated to submit a Private Placement Memorandum (PPM) to SEBI via a Merchant Banker. 

This requirement needs to be fulfilled at least 30 days before scheme launch. SEBI reviews the disclosures in the PPM and provides comments that must be addressed before the scheme can be launched. 

Fast-Track Mechanism for AIF Schemes’ Applications

As part of its initiatives to improve the Ease of Doing Business and considering the constant growth of the AIF industry, the market regulator has now introduced a fast-track mechanism for processing scheme applications. 

This new approach is reliant on due diligence certificates and declarations from Merchant Bankers and AIF Managers instead of conducting a detailed pre-launch review of the disclosures. 

SEBI Proposal for Shortening Timeline for AIF Schemes’ Launch

In its consultation paper, the market regulator has proposed to shorten the timeline for launching Regular AIF schemes from the existing 30 days to just 10 working days after filing the application with SEBI via a Merchant Banker unless the regulator advises otherwise. 

For the first scheme of an AIF, the fund may proceed with the launch either from the date of receiving SEBI registration or after 10 working days from application filing, whichever is later. SEBI aims for this reform to enable faster as well as more efficient deployment of capital by AIFs. 

Source: MoneyControl