SEBI board may take up changes to PMS, settlement regulations
Proposals on FPI participation in commodity derivatives, advertising framework may also be considered
The Securities and Exchange Board of India (SEBI) is set to meet on September 24 to potentially overhaul settlement regulations and portfolio management services (PMS). The board may also address proposals for depository receipts for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), expand the regulatory framework for vault managers, and revise debt market rules.
SEBI has suggested allowing mutual-fund-only PMS, where portfolio managers could offer professionally managed portfolios comprising mutual fund schemes. The regulator has also proposed widening the investment universe available to PMS firms, enabling investments in yet-to-be-listed securities and allowing discretionary portfolio managers to invest up to 10 percent of a client's assets under management in investment-grade unlisted debt securities.
SEBI aims to rationalize settlement amounts and speed up smaller cases by altering the settlement framework, including allowing settlement at later stages of proceedings and introducing a fast-track route for specified violations and cases with settlement amounts up to ₹10 lakh. The board may also consider allowing FPIs to participate in non-agricultural commodity index derivatives and contracts settled through physical delivery, subject to prescribed conditions.
SEBI has proposed a common advertisement code for regulated entities, permitting celebrity endorsements subject to conditions, and expanding the scope of its Vault Managers Regulations to cover electronic gold receipts traded on recognized stock exchanges. Comments must be in English and full sentences, without being abusive or personal.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
