Securities and Exchange Board of India approves overhaul of portfolio management rules

Summary

India's markets regulator, SEBI, has approved a significant overhaul of its regulations governing portfolio management service providers, known as the Portfolio Managers Regulations, 2026. This updated framework simplifies compliance and removes redundant provisions, allowing portfolio managers to broaden their investment options, which now include overseas securities such as listed equities and debt, in line with applicable foreign exchange regulations.

Analysis

Securities and Exchange Board of India: The Securities and Exchange Board of India (SEBI) is the primary regulatory authority responsible for protecting investors and promoting the orderly development of the securities market in India. It recently approved a comprehensive overhaul of the portfolio management services framework through its board meeting, replacing prior regulations with updated rules that expand investment avenues for providers. Regulation: SEBI approved the Portfolio Managers Regulations, 2026, to simplify compliance, remove redundant provisions, and broaden options for portfolio managers. Investment Options: The updated framework permits portfolio managers to invest in overseas securities, including listed equities and debt, subject to applicable foreign exchange regulations.

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