SEBI board clears comprehensive overhaul of PMS, settlement rules
Board opens commodity derivatives to FPIs, clears common ad code; regulator gets 3,500 comments on CAS review
The Securities and Exchange Board of India (SEBI) approved a comprehensive overhaul of portfolio management services (PMS) and settlement rules on Thursday. This change will allow portfolio managers to invest in IPOs, primary debt issuances, and exchange-traded derivatives up to certain percentages of clients' assets. A new framework for investing in mutual fund units directly will also be introduced, with a minimum investment of ₹25 lakh.
SEBI will also permit foreign portfolio investors (FPIs) in non-agricultural index and commodity derivatives, with a requirement to exit positions before delivery obligations arise. The board also revamped settlement proceedings, introducing a pre-show-cause settlement notice with a 60-day application window.
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