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Informist, Thursday, Sept. 24, 2026

--SEBI approves overhaul of portfolio manager regulations 

--SEBI chair: New portfolio manager norms to permit investment in debt IPOs 

MUMBAI – The Securities and Exchange Board of India's board Thursday introduced the portfolio managers route to invest in mutual fund units. Portfolio managers can invest clients' funds in direct plans of mutual funds including exchange traded funds, index funds, and specialised investment funds run by Indian asset management companies. For this, the minimum ticket size has been set at INR 2.50 million.

"Seeing SEBI create a formal category for this model through PRIM (portfolio managers route for investing in mutual fund units) is the biggest validation our approach could have received," Sandeep Jethwani, co-founder of Dezerv, said. "It creates clear accountability for the portfolio — from fund selection and allocation to rebalancing and navigating market cycles," he said.

The market regulator also approved the proposal to boost the development of the portfolio management services industry, help ease of compliance, consolidate regulatory provisions by simplifying language, and remove redundant provisions. "The size of regulation has been reduced by 53% of its original volume and word count has been reduced by 42% of the original word count," chairman of the market regulator Tuhin Kanta Pandey told reporters.

The SEBI board has permitted investment by portfolio managers in initial public offerings and primary market issuance in the debt market. The regulator has enabled investment of up to 10% of the client's assets under management in investment-grade, non-convertible, unlisted debt securities under discretionary portfolio management services with the consent of the client.

The regulator has also permitted investing up to 1.25 times of the client's assets under management in exchange-traded derivatives. Under discretionary portfolio management services and non-discretionary portfolio management services, managers can invest in foreign securities, SEBI said. These investments can be made only through listed equity, debt, real estate investment trust, overseas mutual funds, exchange traded funds, index funds, and foreign government debt which are governed under the Foreign Exchange Management Act, 1999 and the Liberalised Remittance Scheme of the Reserve Bank of India.  End

Reported by Anand JC

Edited by Pankaj Aher

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