SEBI board approves new Portfolio Managers Regulations, cuts rulebook from 70 to 33 pages
At its 24 September 2026 meeting the SEBI board approved the Portfolio Managers Regulations, 2026 and the Settlement of Administrative and Civil Proceedings Regulations, 2026, to replace the 2020 and 2018 versions.
The board of the Securities and Exchange Board of India (SEBI) approved two new sets of regulations at its meeting on 24 September 2026, according to the regulator’s press release (PR No. 59/2026) and news reports of the meeting. The Portfolio Managers Regulations, 2026 are to replace the 2020 rules, and the Settlement of Administrative and Civil Proceedings Regulations, 2026 are to replace the 2018 rules.
Portfolio Managers Regulations, 2026
The press release lists these provisions in the new portfolio management services (PMS) framework:
| Item | Provision |
|---|---|
| Length of the regulations | 70 pages cut to 33 (53% shorter) |
| Provisos | 47 reduced to 4 |
| Unlisted debt (discretionary PMS) | Up to 10% of client assets under management (AUM), investment-grade non-convertible securities, with client consent |
| Exchange-traded derivatives | Up to 1.25 times client AUM |
| Mutual fund route (PRIM) | Minimum ticket of ₹25 lakh; fixed fee capped at 1% of client AUM |
| Principal officer | Graduates become eligible |
| Dealing room | Not required for portfolio managers with AUM below ₹100 crore |
Portfolio managers may also invest in initial public offerings and primary issues of debt. Investment in foreign securities, including listed equity and debt, REITs, overseas mutual funds, ETFs, index funds and foreign government debt, is permitted subject to FEMA and the RBI’s Liberalised Remittance Scheme.
Settlement regulations, 2026
The board approved a formula for settlement amounts. The press release says it is based on the minimum penalty prescribed for the violation, with the stage of proceedings, the regulatory action, gravity, and aggravating and mitigating factors also entering the calculation. Before issuing a show-cause notice, SEBI will issue a settlement notice giving 60 days to file a settlement application. The period for filing an application after a show-cause notice is increased from 60 days to 90 days.
When the regulations take effect
The Settlement Regulations, 2026 come into force on the day after the 30th day from the date they are notified. The press release does not give an effective date for the Portfolio Managers Regulations, 2026.
Basis of these figures
The decisions are those announced by SEBI after its board meeting on 24 September 2026. Read the SEBI press release for the full text. The figures above are from that release and were also reported by Business Today and Outlook Money. This article reports the decisions only and does not assess them.