The Securities and Exchange Board of India (SEBI) has unveiled a new discussion paper aimed at modernizing the regulatory framework for Portfolio Managers (PMs). This move comes as the industry experiences explosive growth, with assets under management (AUM) surging from ₹18.07 lakh crore in 2019 to over ₹42.61 lakh crore by May 2026.
Adapting to Market Sophistication
SEBI officials highlighted that the current regulations require a significant update to accommodate the rising sophistication of domestic investors. As the demand for highly personalized investment strategies continues to climb, the regulator believes the existing rules must evolve to support more diverse and complex portfolio structures.
Driving Future Growth
The proposed review seeks to balance investor protection with the operational flexibility required by fund managers. Key focus areas include:
- Streamlining entry and operational compliance for PMs.
- Expanding the scope of permissible asset classes.
- Enhancing transparency in personalized financial mandates.
By fostering a more robust regulatory environment, SEBI aims to sustain the momentum of the PMS industry while ensuring that retail and institutional participants benefit from improved governance and expanded investment choices.
