{"id":50944,"date":"2026-05-13T17:07:35","date_gmt":"2026-05-13T11:37:35","guid":{"rendered":"https:\/\/edunovations.com\/currentaffairs\/?p=50944"},"modified":"2026-05-13T17:07:37","modified_gmt":"2026-05-13T11:37:37","slug":"sebi-garuda-proposal-explained","status":"publish","type":"post","link":"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/","title":{"rendered":"SEBI GARUDA Proposal Explained: Faster AIF Approvals and Impact on India\u2019s Investment Future"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#SEBI_GARUDA_proposal_explained_learn_how_faster_AIF_approvals_10_days_will_impact_Indias_investment_future_startups_and_financial_market_reforms_for_competitive_exams\" >SEBI GARUDA proposal explained: learn how faster AIF approvals (10 days) will impact India\u2019s investment future, startups, and financial market reforms for competitive exams.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Introduction_to_SEBIs_New_GARUDA_Framework\" >Introduction to SEBI\u2019s New GARUDA Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Understanding_Alternative_Investment_Funds_AIFs\" >Understanding Alternative Investment Funds (AIFs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#What_Exactly_is_the_GARUDA_Proposal\" >What Exactly is the GARUDA Proposal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Role_of_Placement_Memorandum_PPM\" >Role of Placement Memorandum (PPM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Why_SEBI_Introduced_GARUDA\" >Why SEBI Introduced GARUDA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Impact_on_Indias_Investment_Future\" >Impact on India\u2019s Investment Future<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Faster_Capital_Deployment\" >Faster Capital Deployment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Boost_to_Startup_Ecosystem\" >Boost to Startup Ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Ease_of_Doing_Business\" >Ease of Doing Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Increased_Investor_Participation\" >Increased Investor Participation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Regulatory_Efficiency\" >Regulatory Efficiency<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Concerns_and_Challenges\" >Concerns and Challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Importance_for_Government_Exam_Aspirants\" >Importance for Government Exam Aspirants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Why_This_News_is_Important\" >Why This News is Important<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Importance_for_the_Indian_Economy\" >Importance for the Indian Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Importance_for_Competitive_Examinations\" >Importance for Competitive Examinations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Importance_for_Investors_and_Startups\" >Importance for Investors and Startups<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Historical_Context\" >Historical Context<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Evolution_of_SEBI\" >Evolution of SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Development_of_Alternative_Investment_Funds_in_India\" >Development of Alternative Investment Funds in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Earlier_Regulatory_Reforms\" >Earlier Regulatory Reforms<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Key_Takeaways_from_This_News\" >Key Takeaways from This News<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#FAQs_Frequently_Asked_Questions\" >FAQs (Frequently Asked Questions)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#1_What_is_the_GARUDA_proposal_by_SEBI\" >1. What is the GARUDA proposal by SEBI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#2_What_does_GARUDA_stand_for\" >2. What does GARUDA stand for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#3_How_will_GARUDA_benefit_Alternative_Investment_Funds\" >3. How will GARUDA benefit Alternative Investment Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#4_What_are_Alternative_Investment_Funds_AIFs\" >4. What are Alternative Investment Funds (AIFs)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#5_Who_regulates_AIFs_in_India\" >5. Who regulates AIFs in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#6_What_is_a_Placement_Memorandum_PPM\" >6. What is a Placement Memorandum (PPM)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#7_Why_is_GARUDA_important_for_startups\" >7. Why is GARUDA important for startups?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#8_What_is_%E2%80%9Cdeemed_approval%E2%80%9D_in_GARUDA\" >8. What is \u201cdeemed approval\u201d in GARUDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#9_Does_GARUDA_reduce_SEBIs_regulatory_control\" >9. Does GARUDA reduce SEBI\u2019s regulatory control?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#10_Which_competitive_exams_should_study_this_topic\" >10. Which competitive exams should study this topic?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/sebi-garuda-proposal-explained\/#Some_Important_Current_Affairs_Links\" >Some Important Current Affairs Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SEBI_GARUDA_proposal_explained_learn_how_faster_AIF_approvals_10_days_will_impact_Indias_investment_future_startups_and_financial_market_reforms_for_competitive_exams\"><\/span>SEBI GARUDA proposal explained: learn how faster AIF approvals (10 days) will impact India\u2019s investment future, startups, and financial market reforms for competitive exams.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_to_SEBIs_New_GARUDA_Framework\"><\/span>Introduction to SEBI\u2019s New GARUDA Framework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s financial markets regulator, the Securities and Exchange Board of India, has proposed a new mechanism called GARUDA to accelerate the launch process of Alternative Investment Fund (AIF) schemes in the country. GARUDA stands for \u201cGreen-Channel: AIF Rollout Upon Document Acknowledgement.\u201d The proposal aims to simplify approvals, reduce delays, and improve capital deployment efficiency in India\u2019s investment ecosystem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposal is significant because India\u2019s AIF industry has witnessed rapid growth in recent years. With increasing participation from venture capital firms, hedge funds, angel investors, and private equity firms, the regulator believes the existing approval process has become slow and cumbersome. GARUDA seeks to modernize this process through a faster \u201cgreen channel\u201d route.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Alternative_Investment_Funds_AIFs\"><\/span>Understanding Alternative Investment Funds (AIFs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Alternative Investment Funds are privately pooled investment vehicles that collect money from investors and invest it in non-traditional assets. These funds are regulated under the SEBI (Alternative Investment Funds) Regulations, 2012. They include venture capital funds, private equity funds, hedge funds, infrastructure funds, and angel funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AIFs are categorized into three major groups:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Category I \u2013 Venture capital funds, SME funds, infrastructure funds, and social venture funds.<\/li>\n\n\n\n<li>Category II \u2013 Private equity funds and debt funds.<\/li>\n\n\n\n<li>Category III \u2013 Hedge funds and funds using complex trading strategies.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">These funds play a major role in financing startups, infrastructure projects, and innovative businesses that may not receive support through traditional banking channels.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Exactly_is_the_GARUDA_Proposal\"><\/span>What Exactly is the GARUDA Proposal?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the current system, AIFs can launch their schemes only after waiting for around 30 days following the submission of their Placement Memorandum (PPM) to SEBI. The GARUDA proposal seeks to reduce this waiting period to just 10 working days.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that if SEBI does not raise objections within 10 working days, the AIF scheme can begin operations automatically. The mechanism is similar to a \u201cdeemed approval\u201d system aimed at improving ease of doing business in India\u2019s financial markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Accredited Investor-only schemes and Angel Funds, the proposal goes even further. These funds may be allowed to launch immediately after filing documents without waiting for SEBI review.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Placement_Memorandum_PPM\"><\/span>Role of Placement Memorandum (PPM)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Placement Memorandum is a legal disclosure document submitted by AIFs to SEBI before launching any investment scheme. It contains information about:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investment objectives<\/li>\n\n\n\n<li>Risks involved<\/li>\n\n\n\n<li>Fund structure<\/li>\n\n\n\n<li>Management details<\/li>\n\n\n\n<li>Investor eligibility<\/li>\n\n\n\n<li>Fees and expenses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The GARUDA mechanism focuses mainly on speeding up the processing of these documents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_SEBI_Introduced_GARUDA\"><\/span>Why SEBI Introduced GARUDA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">India\u2019s investment landscape has expanded rapidly in recent years. According to SEBI data, the number of registered AIFs increased from around 732 five years ago to nearly 1,849 by March 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, investment commitments through AIFs crossed \u20b915 lakh crore, showing the growing importance of private capital in India\u2019s economy. This rise created a backlog of applications and increased regulatory delays. SEBI introduced GARUDA to address these bottlenecks and make India more investment-friendly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposal also aligns with India\u2019s broader economic reforms aimed at improving startup funding, encouraging innovation, and attracting global investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_Indias_Investment_Future\"><\/span>Impact on India\u2019s Investment Future<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Faster_Capital_Deployment\"><\/span>Faster Capital Deployment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">One of the biggest advantages of GARUDA is faster capital deployment. Investment funds will be able to raise and invest money more quickly, helping startups and businesses access financing without unnecessary delays.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Boost_to_Startup_Ecosystem\"><\/span>Boost to Startup Ecosystem<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">India has emerged as one of the world\u2019s leading startup hubs. Venture capital and private equity investments are critical for startup growth. Faster approvals can increase investor confidence and encourage more domestic and international funding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ease_of_Doing_Business\"><\/span>Ease of Doing Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The proposal supports the government\u2019s \u201cEase of Doing Business\u201d initiative. By reducing bureaucratic delays, India can improve its attractiveness as an investment destination.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increased_Investor_Participation\"><\/span>Increased Investor Participation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The simplified mechanism may encourage more accredited investors and institutional investors to participate in alternative investment products. This can deepen India\u2019s capital markets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regulatory_Efficiency\"><\/span>Regulatory Efficiency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GARUDA shifts SEBI\u2019s approach from heavy pre-approval scrutiny to post-facto risk-based monitoring. This allows the regulator to focus on high-risk cases while enabling smoother functioning for compliant entities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concerns_and_Challenges\"><\/span>Concerns and Challenges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Although the proposal has been welcomed by many market participants, some experts believe reduced scrutiny could increase risks if proper compliance standards are not maintained.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A faster approval system may potentially allow poorly structured schemes to enter the market if due diligence weakens. Therefore, SEBI plans to continue conducting post-launch inspections and risk-based audits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another concern relates to investor protection. Since AIFs often involve high-risk investments, regulators must ensure transparency and accountability remain strong.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_for_Government_Exam_Aspirants\"><\/span>Importance for Government Exam Aspirants<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The GARUDA proposal is important for students preparing for UPSC, State PCS, Banking, SSC, Railways, Defence, and other competitive examinations because it relates to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indian Economy<\/li>\n\n\n\n<li>Financial Market Reforms<\/li>\n\n\n\n<li>SEBI and Capital Markets<\/li>\n\n\n\n<li>Startup Ecosystem<\/li>\n\n\n\n<li>Investment and Economic Growth<\/li>\n\n\n\n<li>Ease of Doing Business<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Questions may be asked about the full form of GARUDA, SEBI\u2019s functions, Alternative Investment Funds, and India\u2019s financial sector reforms.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\" id=\"SEBI-GARUDA-proposal-explained\"><img decoding=\"async\" src=\"data:image\/jpeg;base64,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\" alt=\"SEBI GARUDA proposal explained\" style=\"width:629px;height:auto\" title=\"SEBI GARUDA proposal explained\"\/><figcaption class=\"wp-element-caption\">SEBI GARUDA proposal explained<\/figcaption><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_This_News_is_Important\"><\/span>Why This News is Important<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_for_the_Indian_Economy\"><\/span>Importance for the Indian Economy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The GARUDA proposal reflects India\u2019s ongoing efforts to modernize its financial markets and improve investment efficiency. Faster approvals for Alternative Investment Funds can improve the flow of capital into startups, infrastructure projects, and innovative industries. This can support economic growth, employment generation, and entrepreneurship.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposal also demonstrates India\u2019s intention to compete with global financial markets by creating a more investor-friendly regulatory environment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_for_Competitive_Examinations\"><\/span>Importance for Competitive Examinations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This topic is highly relevant for current affairs sections of UPSC, State PCS, Banking, RBI, SEBI Grade A, SSC, and Commerce-related examinations. Questions may be asked regarding:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Functions of SEBI<\/li>\n\n\n\n<li>Alternative Investment Funds<\/li>\n\n\n\n<li>Financial sector reforms<\/li>\n\n\n\n<li>Ease of Doing Business initiatives<\/li>\n\n\n\n<li>Startup financing mechanisms<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Students should also understand how regulatory reforms impact India\u2019s economy and investment climate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_for_Investors_and_Startups\"><\/span>Importance for Investors and Startups<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The proposal can significantly help startups and emerging businesses by reducing funding delays. Venture capital and angel investments are essential for innovation-driven sectors such as technology, fintech, health-tech, and renewable energy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For investors, quicker approvals mean improved operational flexibility and faster market participation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Historical_Context\"><\/span>Historical Context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Evolution_of_SEBI\"><\/span>Evolution of SEBI<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Securities and Exchange Board of India was established in 1988 and received statutory powers in 1992 after the Harshad Mehta securities scam. Its primary objective is to regulate India\u2019s securities market and protect investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over the years, SEBI has introduced several reforms to improve transparency, governance, and market efficiency.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Development_of_Alternative_Investment_Funds_in_India\"><\/span>Development of Alternative Investment Funds in India<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The AIF framework was officially introduced in 2012 to regulate privately pooled investment vehicles. Before this, venture capital and private equity investments operated under multiple fragmented regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The AIF sector expanded rapidly due to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Growth of Indian startups<\/li>\n\n\n\n<li>Rising foreign investments<\/li>\n\n\n\n<li>Expansion of private equity funding<\/li>\n\n\n\n<li>Increased interest in alternative assets<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">As India\u2019s startup ecosystem matured, the demand for quicker regulatory approvals also increased.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Earlier_Regulatory_Reforms\"><\/span>Earlier Regulatory Reforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">SEBI has previously introduced multiple reforms such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Faster IPO approvals<\/li>\n\n\n\n<li>Digital KYC systems<\/li>\n\n\n\n<li>Risk-based supervision<\/li>\n\n\n\n<li>Enhanced disclosure norms<\/li>\n\n\n\n<li>Accredited investor framework<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">GARUDA represents another step toward reducing regulatory delays while maintaining market oversight.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_from_This_News\"><\/span>Key Takeaways from This News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>S.No.<\/th><th>Key Takeaway<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>GARUDA stands for \u201cGreen-Channel: AIF Rollout Upon Document Acknowledgement.\u201d<\/td><\/tr><tr><td>2<\/td><td>SEBI proposes reducing AIF scheme launch timelines from 30 days to 10 working days.<\/td><\/tr><tr><td>3<\/td><td>The proposal aims to improve ease of doing business and faster capital deployment.<\/td><\/tr><tr><td>4<\/td><td>Alternative Investment Funds include venture capital, hedge funds, private equity, and angel funds.<\/td><\/tr><tr><td>5<\/td><td>The reform is important for India\u2019s startup ecosystem and financial market modernization.<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">SEBI GARUDA proposal explained<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Frequently_Asked_Questions\"><\/span>FAQs (Frequently Asked Questions)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_the_GARUDA_proposal_by_SEBI\"><\/span>1. What is the GARUDA proposal by SEBI?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The GARUDA proposal is a SEBI initiative that introduces a \u201cgreen channel\u201d mechanism for faster approval and launch of Alternative Investment Fund (AIF) schemes in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_What_does_GARUDA_stand_for\"><\/span>2. What does GARUDA stand for?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">GARUDA stands for <strong>\u201cGreen-Channel: AIF Rollout Upon Document Acknowledgement.\u201d<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_How_will_GARUDA_benefit_Alternative_Investment_Funds\"><\/span>3. How will GARUDA benefit Alternative Investment Funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It reduces the waiting time for AIF scheme launch approvals from around 30 days to 10 working days, enabling faster fundraising and investment deployment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_What_are_Alternative_Investment_Funds_AIFs\"><\/span>4. What are Alternative Investment Funds (AIFs)?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AIFs are privately pooled investment funds that invest in non-traditional assets such as venture capital, private equity, hedge funds, and infrastructure projects.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Who_regulates_AIFs_in_India\"><\/span>5. Who regulates AIFs in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">AIFs are regulated by the <strong>Securities and Exchange Board of India (SEBI)<\/strong> under the SEBI (AIF) Regulations, 2012.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_What_is_a_Placement_Memorandum_PPM\"><\/span>6. What is a Placement Memorandum (PPM)?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A Placement Memorandum is a document submitted by AIFs to SEBI containing details about investment strategy, risks, fund structure, and fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Why_is_GARUDA_important_for_startups\"><\/span>7. Why is GARUDA important for startups?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It helps startups receive funding faster by enabling quicker approvals for venture capital and private equity funds.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_What_is_%E2%80%9Cdeemed_approval%E2%80%9D_in_GARUDA\"><\/span>8. What is \u201cdeemed approval\u201d in GARUDA?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If SEBI does not raise objections within 10 working days, the AIF scheme is automatically considered approved under the GARUDA system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Does_GARUDA_reduce_SEBIs_regulatory_control\"><\/span>9. Does GARUDA reduce SEBI\u2019s regulatory control?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No, SEBI will continue post-launch monitoring and risk-based supervision to ensure investor protection.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Which_competitive_exams_should_study_this_topic\"><\/span>10. Which competitive exams should study this topic?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">UPSC, State PCS, SSC, Banking exams, SEBI Grade A, RBI exams, and Railways exams frequently cover such financial reforms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Current_Affairs_Links\"><\/span>Some Important Current Affairs Links<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/national\/\" target=\"_blank\" rel=\"noreferrer noopener\">State Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" 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Introduction to SEBI\u2019s New GARUDA Framework India\u2019s financial markets regulator, the Securities and Exchange Board of India, has proposed a new mechanism called GARUDA to accelerate the launch process of Alternative&#8230;<\/p>\n","protected":false},"author":6,"featured_media":50974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,144],"tags":[7182,27537,32113,37056,37055,4926,12754,28141,4201,9601],"class_list":["post-50944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-economy_finance","tag-alternative-investment-funds","tag-capital-markets","tag-current-affairs-2026","tag-financial-reforms-india","tag-garuda-proposal","tag-government-exam-current-affairs","tag-indian-economy-updates","tag-investment-policy","tag-sebi","tag-startup-ecosystem"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/comments?post=50944"}],"version-history":[{"count":3,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50944\/revisions"}],"predecessor-version":[{"id":50975,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/50944\/revisions\/50975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media\/50974"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media?parent=50944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/categories?post=50944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/tags?post=50944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}