SEBI's New Model for Fast-Tracked AIF Schemes

SEBI is proposing a regulatory framework for Alternative Investment Funds (AIFs) to speed up fund launches. The 'Lodge and Launch' model relies on merchant bankers for due diligence, ensuring faster approvals. The initiative aims to enhance ease of business and mobilize private capital effectively.

In a major announcement at the IVCA Conclave 2026, SEBI Chairman Tuhin Kanta Pandey revealed the regulator's plans to introduce a new framework for Alternative Investment Funds (AIFs). The proposed 'Lodge and Launch' model aims to speed up the fund schemes' approval process.

This innovative framework would leverage due diligence certificates from merchant bankers to enable quicker launches of specific AIF schemes by ensuring disclosure-related compliance. It seeks to enhance the ease of doing business and facilitate a swifter mobilisation of private capital, reducing the red tape around fund launches.

Pandey also addressed concerns about 'mis-selling' and the challenges of product suitability in the rapidly expanding AIF industry. He stressed the importance of clear risk disclosure due to the sophisticated nature of investments involved. He further underscored the critical role AIFs could play in building India's long-term capabilities by financing strategic sectors.

(With inputs from agencies.)