Sebi plans a wider investment play for portfolio managers

Sebi released a discussion paper proposing wide-ranging reforms for portfolio managers as PMS industry AUM grew to ₹42.61 lakh crore by May 2026 from ₹18.07 lakh crore in April 2019. Key proposals include a new MF-PMS category with a lower minimum ticket size of ₹25 lakh (from ₹50 lakh) and minimum net worth of ₹2 crore (from ₹5 crore), permission to invest in to-be-listed securities, investment-grade unlisted debt and overseas securities subject to FEMA and LRS limits, a cap of 2.5 percent of AUM on fixed management fees, and derivatives exposure capped at 1.25 times client AUM with unhedged short exposure limited to 50 percent of AUM.