The Securities and Exchange Board of India has approved a broad regulatory package led by new Portfolio Managers Regulations that will replace the 2020 framework. Portfolio managers will gain access to initial public offerings, primary debt issuance, foreign securities and exchange traded derivatives up to 1.25 times client assets under management. The rules also permit discretionary managers, with client consent, to invest up to 10% of client assets in investment grade unlisted debt and create a Portfolio Managers Route for Investing in Mutual Fund units with a minimum ticket of INR 25 lakh. Compliance changes include a standardized investment management agreement, relaxed dealing room requirements for managers with assets below INR 100 crore and simpler principal officer eligibility. The revised regulations cut the framework from 70 to 33 pages. SEBI also approved new settlement regulations that will replace the 2018 framework and take effect on the day after 30 days from notification. The regime separates disgorgement from the settlement amount, introduces a revised calculation formula, provides a settlement notice before most show cause notices and extends the post-notice application period from 60 to 90 days. It creates fast track routes for specified violations and settlement amounts not exceeding INR 10 lakh, while a 90-day transitional window will allow certain entities with pending proceedings to apply subject to a 20% uplift. Separately, a fourth settlement scheme will cover eligible entities with pending proceedings over non-genuine trades in illiquid BSE stock options between April 1, 2014, and Sept. 30, 2015. Other approvals broaden market access and simplify requirements across regulated sectors. Foreign portfolio investors will be permitted to trade nonagricultural index derivatives and noncash settled nonagricultural commodity derivatives, subject to exiting before the tender period. SEBI also enabled depository receipts on real estate investment trust and infrastructure investment trust units, eased their voting and exit offer rules, removed mandatory listing of existing unlisted debt when an issuer first lists new debt and established a common advertising code for specified regulated entities. Following its review of the accredited investor framework, SEBI will allow manager-led accreditation, add securities market exposure thresholds of INR 5 crore for specified individual-type investors and INR 20 crore for corporate bodies and other trusts, and deem persons resident outside India to be accredited investors. Further measures strengthen vault manager requirements, extend asset-use protections to investors in all forms of alternative investment funds and relax call-recording requirements for research communications with institutional investors.
2026-09-24Securities & Exchange Board of India
Securities and Exchange Board of India approves portfolio management overhaul, expanded settlement access and broader investment channels
The Securities and Exchange Board of India approved new portfolio management and settlement regimes, expanding permissible investments, simplifying compliance and creating faster and wider settlement routes. It also broadened foreign investor access to commodity derivatives, enabled depository receipts on REIT and InvIT units and simplified accredited investor status through manager-led accreditation and new eligibility routes. Additional measures cover advertising, debt listings, bullion vaults, alternative investment funds and research analysts.