Sebi clears new rules to broaden investments

The Sebi board has approved new regulations to broaden investment opportunities. These changes allow portfolio managers to invest in foreign securities and a wider range of exchange-traded commodity derivatives. Additionally, the regulator will permit foreign portfolio investors to participate in non-agricultural index derivatives.

The introduction of PRIM, a portfolio manager route, enables portfolio managers to offer mutual fund and Structured Investment Fund (SIF) based strategies. The minimum ticket size for investments would be ₹25 lakh, with fixed management fees capped at 1% of client assets under management. The framework also allows portfolio managers to invest up to 10% of a client's assets in non-convertible unlisted debt securities.

Independent fund managers can now manage client portfolios in association with registered portfolio managers, providing greater flexibility and access to a broader set of investment opportunities.