The Securities and Exchange Board of India (SEBI) issued a consultation paper on 23 July 2026 proposing a comprehensive review of the SEBI (Portfolio Managers) Regulations, 2020 covering Portfolio Management Services (PMS), mutual fund-only PMS, ETFs, SIFs and investment limits.
Proposed Framework
- Mutual fund-only PMS: Portfolio managers may manage client funds exclusively through direct plans of mutual fund schemes, including ETFs and Specialised Investment Funds (SIFs).
- Client categories: Separate category for mutual fund-only PMS with lower entry thresholds proposed.
- Consultation process: Paper invites public comments before finalising amendments.
Key Numerical Changes
- Minimum investment (proposed): ₹25 lakh for mutual fund-only PMS (down from ₹50 lakh).
- Minimum net worth for applicants (proposed): ₹2 crore (down from ₹5 crore).
- Unlisted debt limit: Discretionary PMS may invest up to 10% of a client’s AUM in investment-grade unlisted debt securities.
- Overseas and to-be-listed securities: Proposal permits investment in overseas listed equity and debt and to-be-listed securities.
Industry Metrics
- Assets Under Management: PMS AUM stood at ₹42.61 lakh crore as of 31 May 2026.
- Number of portfolio managers: Increased from 226 in 2020 to 515 as of 31 May 2026.
IASPOINT Booster Facts
- Regulator: SEBI — Securities and Exchange Board of India — regulates PMS.
- Governing law: SEBI (Portfolio Managers) Regulations, 2020.
- PMS types: Discretionary, non-discretionary and advisory mandates.
- ETF: Exchange-traded fund listed and traded on stock exchanges like shares.
- SIF: Specialised Investment Fund — category within India’s fund framework for professional investors.