New Delhi, March 11 -- India's capital markets regulator is exploring faster approvals for alternative investment funds (AIFs) to boost sentiment and participation in the fast-growing segment.

It is evaluating a "lodge and launch" framework that could significantly shorten the time taken for new AIF schemes to come to market, said Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi) at the IVCA Conclave on Wednesday.

Under the proposed model, Sebi may rely on due diligence certificates issued by merchant bankers for certain AIF schemes. For schemes intended exclusively for accredited investors, the responsibility for disclosure diligence would rest with the AIF manager.

"This framework can improve ease of d...