Mint Explainer| Will Sebi's proposed changes lift the portfolio management industry?

SEBI has proposed sweeping revamp of portfolio management services (PMS) regulations aimed at broadening investment avenues, easing compliance, and simplifying the regulatory framework for PMS firms. Key proposals include a new mutual fund-only PMS framework with a reduced minimum investment of about Rs 250,000 (from Rs 500,000), allowing investments in to-be-listed securities, up to 10 percent of client AUM in investment-grade unlisted debt, and overseas securities including listed equity, debt and overseas mutual funds. The PMS industry AUM has risen two-fold to Rs 42.61 trillion as of May 2026 with 2.1 million clients, while mutual fund assets have grown over three times to Rs 81.6 trillion during the same period.