The Securities and Exchange Board of India (SEBI) has extended the deadline for its regulated entities to complete the accessibility audit of their digital platforms and remediate the audit findings, pushing it to October 31, 2026. In a separate move, the market regulator has launched the GARUDA framework, a fast-track mechanism that lets eligible Alternative Investment Fund (AIF) schemes begin operations just 10 working days after filing their placement documents. Together, the two steps reflect SEBI’s twin priorities of making the securities market more inclusive and making it easier to do business.
Digital Accessibility: The New Regulatory Push
The digital accessibility framework requires every Regulated Entity (RE) registered with SEBI to make its digital platforms usable by persons with disabilities. Regulated entities include stock brokers, mutual funds and asset management companies, portfolio managers, depositories, clearing corporations, KYC registration agencies and other market intermediaries.
The framework draws its legal force from the Rights of Persons with Disabilities Act, 2016, the primary Indian legislation that guarantees equal access to information, technology and services for persons with disabilities. SEBI issued its main circular on the subject in July 2025, directing all regulated entities to align their websites, mobile applications, trading portals and investor interfaces with recognised accessibility standards. These include the Web Content Accessibility Guidelines (WCAG) 2.1, the Guidelines for Indian Government Websites (GIGW), the Indian standard IS 17802 for accessible information and communication technology products and the provisions of the disabilities Act itself.
A key requirement is that accessibility audits must be carried out by professionals certified by the International Association of Accessibility Professionals (IAAP). Regulated entities also have to appoint a Nodal Officer to oversee compliance and grievance redressal, and accessibility complaints can now be raised by investors through SEBI’s SCORES platform, which is the online grievance redressal system for the securities market.
The Framework and Its Milestones
The original compliance calendar, revised through an earlier August 2025 circular, set out three main deadlines for regulated entities.
| Milestone | Original Deadline |
|---|---|
| Submission of the list of digital platforms | September 30, 2025 |
| Appointment of IAAP-certified accessibility auditors | December 14, 2025 |
| Completion of the accessibility audit | April 30, 2026 |
| Remediation of audit findings and full compliance | July 31, 2026 |
The extension announced in July 2026 merges the last two stages. Both the completion of the audit and the remediation of the findings now have a single deadline of October 31, 2026.
The Extended Deadline
SEBI announced the extension on July 31, 2026 after receiving formal requests from industry stakeholders who said they needed more time to meet the requirements of the disabilities Act. The regulator clarified that regulated entities must now complete the accessibility audit of their digital platforms and fix all findings within the same extended window.
This is the second time the regulator has relaxed the compliance timeline since the framework was unveiled in 2025. The move is meant to give the industry adequate time to hire certified auditors and carry out the technical work of remediation, which includes changes to code, design, user interfaces and investor-facing documents such as notices and disclosures.
GARUDA: A Fast Track for AIF Schemes
SEBI issued an operational circular on July 30, 2026 that rolled out the GARUDA mechanism, which stands for Green-Channel: AIF Rollout Upon Document Acknowledgement. The framework changes how new AIF schemes obtain clearance to launch.
Under GARUDA, a regular AIF scheme can begin operations 10 working days after the fund files its Private Placement Memorandum (PPM) with SEBI through the Intermediary portal, unless the regulator raises objections within that window. A Private Placement Memorandum is the document that discloses a fund’s investment strategy, fees, risk factors and other material information to prospective investors. Earlier, fund managers had to wait for SEBI’s review and observations before launching a scheme, a process that often stretched to roughly a month.
SEBI has clarified that an AIF’s very first scheme can be launched only after the fund receives its registration certificate or after the 10-working-day period from filing, whichever is later. The GARUDA framework applies to all scheme documents filed after the notification of the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026.
What Are Alternative Investment Funds?
Alternative Investment Funds (AIFs) are pooled investment vehicles that invest in assets beyond traditional avenues such as publicly traded equity, debt and mutual funds. In India, they are regulated by the SEBI (Alternative Investment Funds) Regulations, 2012, which classify AIFs into three categories based on their investment strategy and use of leverage.
| Category | Focus | Key Features |
|---|---|---|
| Category I | Startups, small and medium enterprises, social ventures and infrastructure | Includes Venture Capital Funds, SME Funds, Social Impact Funds and Angel Funds; enjoys concessions and pass-through taxation |
| Category II | Private equity, structured credit, real estate and unlisted companies | The largest category; no leverage beyond operational needs; pass-through tax treatment |
| Category III | Complex strategies involving leverage and active trading | Includes hedge-fund-like strategies; taxed at the fund level; higher regulatory oversight |
The minimum investment by any investor in an AIF is ₹1 crore, except for Angel Funds, where it is ₹25 lakh. This makes AIFs vehicles designed for wealthy, sophisticated investors who can commit capital for long periods. The sector has grown rapidly in recent years, with cumulative commitments crossing ₹10 lakh crore in 2025-26, driven mainly by Category II private credit and private equity funds.
What Changes Under GARUDA
The key change is a shift from an approval-based model to an acknowledgement-based model. SEBI no longer conducts a detailed review of every scheme before launch. Instead, the burden of verifying the accuracy and completeness of the Placement Memorandum rests on independent Merchant Bankers, who must certify the disclosures before the document is filed.
For Accredited Investor-only (AI-only) Funds and Large Value Funds (LVFs), the process has been eased further. These funds no longer need to route their documents through a Merchant Banker or wait for SEBI’s observations, and can launch schemes immediately after filing, provided the AIF itself is already registered. Angel Funds have been exempted from the Merchant Banker filing requirement altogether. SEBI has also introduced naming conventions that require such schemes to carry “AIOF” for Accredited Investor-only Funds and “LVF” for Large Value Funds in their names.
Safeguards Stay in Place
Faster launches do not mean weaker oversight. Merchant Bankers remain mandatory for regular AIF schemes and must carry out independent due diligence before the Placement Memorandum is filed. To preserve independence, a Merchant Banker cannot be associated with the AIF, its sponsor, manager or trustee.
SEBI also retains its supervisory and enforcement powers. The regulator can intervene during the 10-working-day window if it finds any concern, and the framework does not lower disclosure standards. As the move is an operational reform, it leaves the risk profile of AIFs unchanged, and these funds continue to be meant for sophisticated investors committing long-term capital.
What These Moves Signal
The two decisions, announced within a day of each other, point to a consistent regulatory philosophy. On the accessibility front, SEBI is treating inclusive digital access as part of investor protection rather than a purely technical matter. The Supreme Court’s observation in April 2025 that digital access forms an intrinsic part of the right to life and personal liberty under Article 21 of the Constitution has given this push legal weight, and SEBI’s framework is among the first sectoral responses to that ruling.
On the AIF front, the GARUDA mechanism advances the broader goal of ease of doing business. By cutting the launch timeline for schemes to 10 working days, it helps fund managers act quickly on time-sensitive opportunities in private credit, pre-IPO and venture deals, while shifting accountability to merchant bankers and the fund managers themselves.
Key Takeaways
- SEBI extended the deadline for completing the digital accessibility audit and remediation to October 31, 2026, through a circular dated July 31, 2026.
- The accessibility framework applies to all Regulated Entities (REs), including stock brokers, mutual funds, portfolio managers and depositories.
- Compliance is anchored in the Rights of Persons with Disabilities Act, 2016 and standards such as WCAG 2.1, GIGW and IS 17802, with audits conducted by IAAP-certified professionals.
- The GARUDA framework, which stands for Green-Channel: AIF Rollout Upon Document Acknowledgement, lets regular AIF schemes launch 10 working days after filing their Private Placement Memorandum (PPM).
- AIFs are regulated under the SEBI (Alternative Investment Funds) Regulations, 2012, with a minimum investment of ₹1 crore per investor (₹25 lakh for Angel Funds).
- The framework applies to scheme documents filed after the SEBI (AIF) (Second Amendment) Regulations, 2026, and Merchant Bankers continue to certify disclosures for regular schemes.
