Sebi proposes MF-only portfolio management service, wider investment universe

Sebi has proposed a comprehensive revamp of portfolio management regulations, including a new mutual fund-only PMS category with a reduced minimum investment threshold of about Rs 25 lakh (down from Rs 50 lakh) and a lower net worth requirement of Rs 2 crore for applicants. The proposals also allow portfolio managers to invest in to-be-listed securities, up to 10 percent of client AUM in investment-grade unlisted debt, and overseas assets subject to LRS and FEMA limits, while capping fixed management fees at 2.5 percent of client AUM. The PMS industry currently manages assets worth about Rs 42.61 trillion across 219,000 clients as of May 2026.