Sebi proposes allowing portfolio managers to invest overseas, in to-be-listed securities

SEBI has proposed allowing portfolio managers to invest in overseas securities and to-be-listed securities, aligning PMS rules with mutual funds and alternative investment funds. The regulator also proposed investing up to 10 percent of client funds in unlisted debt, creating a new category of portfolio managers with a minimum client investment size halved to 2.5 million rupees, and permitting derivatives exposure of up to 1.25 times of client assets. The PMS industry has grown to 42.61 trillion rupees in assets as of May 31, 2026, from 18.07 trillion rupees in April 2019, prompting the comprehensive review.