The Securities and Exchange Board of India (SEBI), on July 23, 2026, issued a Consultation Paper proposing a comprehensive review of the SEBI (Portfolio Managers) Regulations, 2020 to simplify the regulatory framework, strengthen investor protection, and improve ease of doing business for portfolio managers. The proposals include amendments relating to compliance, governance, operational flexibility, reporting, and consolidation of regulatory provisions.
Key proposals include clarifications on operating expense limits, corporate governance reporting timelines, geographical scope of portfolio management activities, commencement of business requirements, eligibility criteria for compliance officers, surrender of registration, dealing room requirements, and minimum investment thresholds. SEBI has also proposed easing compliance by consolidating regulatory provisions, simplifying reporting formats, relaxing certain operational requirements for smaller portfolio managers, and rationalising grandfathering provisions.
The consultation paper further seeks public comments on proposals relating to global fund management, independent fund managers operating under registered portfolio managers, demat account portability, operational relaxation from Power of Attorney (PoA) requirements, and other regulatory reforms. Stakeholders may submit comments through SEBI's online consultation portal by August 13, 2026.
