SEBI to review PMS regulations; consultation paper likely in June, says Chairman Tuhin Kanta Pandey

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday (February 23) said the regulator has begun a comprehensive review of Portfolio Management Services (PMS) regulations, with a consultation paper on proposed changes likely to be released in June.

Speaking at a PMS industry conference, Pandey said investor suitability would remain “at the core” of the PMS framework.

He further said that investor transparency in the segment has improved, but emphasised the need for a fresh look at the existing regulations.

He added that industry body APMI should work towards making PMS a preferred investment choice within the regulatory framework.

“We are taking a comprehensive review of all SEBI regulations,” he said, noting that this would include a review of the Listing Obligations and Disclosure Requirements (LODR) regulations as well as settlement regulations, alongside PMS norms.

On trading-related funding, the SEBI chief said the regulator would examine the Reserve Bank of India’s rules on lending norms for trading and share its views with the central bank.

Separately, Pandey said SEBI is working with concerned ministries of the Government of India to review the ban on certain agricultural commodities, without elaborating on timelines.

Addressing internal governance, he said SEBI’s employee regulations require “absolute integrity” from its staff, adding that the “vast majority” of employees discharge their duties well.

SEBI regulates India’s securities markets, including portfolio managers, stock exchanges and listed entities.

Portfolio Management Services are customised investment solutions offered to high-net-worth investors and are governed by specific eligibility, disclosure and compliance norms laid down by the regulator.