The Securities and Exchange Board of India (SEBI) announced a fast-track mechanism on Thursday for processing private placement memoranda (PPMs) submitted by alternative investment funds (AIFs), facilitating quicker scheme launches and enhanced capital deployment.
As part of measures to improve the ease of doing business, SEBI indicated that AIFs, with the exception of large value funds for accredited investors (LVFs), can initiate the launch of their new schemes and distribute the PPM to potential investors after a 30-day waiting period from the application filing date, unless advised otherwise.
In the case of first-time schemes, AIFs may launch either on the registration date or after the 30-day period from filing, whichever occurs later, according to the circular.
This represents a significant change from the previous process, where SEBI examined PPM disclosures and issued comments prior to allowing funds to proceed, often resulting in delays. SEBI acknowledged that the previous procedure was “time-consuming” and highlighted the need for efficient capital deployment by AIFs.
Nevertheless, SEBI emphasized that any comments issued during the 30-day window must be integrated before the launch of the schemes. AIFs are also required to declare the first close of a scheme within 12 months after they become eligible to launch.
SEBI has increased accountability for intermediaries, stating, “The Merchant Banker and the Manager of the AIF shall be responsible for ensuring the accuracy and completeness of all disclosures made in the PPMs.”
The filing process will continue through SEBI’s intermediary portal, requiring documents such as due diligence certificates, fit-and-proper declarations, and PAN details of key entities.
Additionally, SEBI has mandated a comprehensive disclaimer in PPMs, asserting that while merchant bankers certify disclosures as “true, fair and adequate,” the submission of documents “should not in any way be deemed or construed that the same has been approved by SEBI.” SEBI clarified, “We do not assume any responsibility for the accuracy and correctness of disclosures, facts and claims made in the PPM.”
Srini Sriniwasan, Managing Director of Kotak Alternate Asset Managers and Chairperson of the Indian Venture and Alternate Capital Association, remarked, “IVCA welcomes SEBI’s notification of the fast-track mechanism for the launch of AIFs. This important step in ease of doing business will accelerate capital formation and at the same time casts greater responsibility on managers, which the industry welcomes.”
The circular takes effect immediately and applies to all pending PPM filings for non-LVF schemes. SEBI cautioned that any irregularities or lapses in disclosures would prompt regulatory action, while all other provisions of the existing AIF master circular remain unchanged.
Published on April 30, 2026.
