Sebi approves new rules to widen investment avenues
The board of Sebi has sanctioned new regulations aimed at portfolio managers, paving the way for innovative investment avenues. These guidelines enable investments in mutual funds, international securities, and diverse commodity derivatives. Portfolio managers now have the flexibility to direct client funds towards mutual fund direct plans and initial public offerings.
The Securities and Exchange Board of India (Sebi) has approved new regulations that will widen investment avenues for portfolio managers. These rules enable investment in foreign securities, a revamped settlement framework, and the participation of foreign portfolio investors in a broader range of exchange-traded commodity derivatives.
Additionally, the regulator has introduced a portfolio manager route for investing in mutual fund units, allowing managers to invest clients' funds in direct plans of mutual funds, ETFs, index funds, and specialized investment funds. The minimum ticket size for these investments is set at ₹25 lakh, with fixed management fees capped at 1% of client assets under management.
The new rules also permit portfolio managers to invest in initial public offerings and primary issuances in the debt market, as well as up to 10% of a client's AUM in investment-grade, non-convertible unlisted debt securities under discretionary PMS.
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