Under the revised framework, AIFs—excluding large value funds for accredited investors (LVFs)—can launch new schemes and circulate their PPMs to investors 30 days after filing with SEBI, unless the regulator advises otherwise. Earlier, the process involved detailed scrutiny, multiple rounds of comments, and resubmissions, often delaying launches.
For first-time schemes, SEBI said funds can proceed only after receiving registration or completing 30 days from filing—whichever is later. Any regulatory comments issued within this 30-day window must be incorporated before launch or circulation of the PPM.
The regulator has also introduced a defined timeline for fundraising milestones. AIFs must declare the first close of a scheme within 12 months from the date they become eligible to launch it.
Responsibility for disclosures has shifted more firmly to intermediaries. Merchant bankers and AIF managers will now be accountable for the accuracy and completeness of information provided in PPMs and related filings. As part of the updated requirements, AIFs must submit due diligence certificates, fit-and-proper declarations, details of sponsor commitments, and identification documents of key entities and personnel.
SEBI has also standardised a disclaimer to clarify that filing a PPM does not amount to regulatory approval and that disclosure responsibility lies with the fund manager and merchant banker.
The circular takes immediate effect and will apply to pending applications as well, signalling a broader shift towards faster capital deployment while relying on strengthened intermediary oversight.
Industry participants broadly welcomed the move. Srini Srinivasan, Managing Director at Kotak Alternate Asset Managers and Chairperson of the Indian Venture and Alternate Capital Association, said the fast-track framework would support quicker capital formation while placing greater responsibility on fund managers—an approach the industry supports.
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First Published: May 2, 2026 8:51 AM IST
