Stories
SEBI Board to Revamp PMS, FPI Access, AIF, and REIT Regulations on Thursday
- •SEBI's board meeting on Thursday will address around a dozen proposals, including a comprehensive overhaul of Portfolio Management Services (PMS) regulations.
- •Key proposals include widening the accredited investor framework, a common advertising code, and allowing REITs and InvITs to raise foreign capital through depository receipts.
- •The PMS revamp aims to expand investment choices, lower entry barriers, and ease compliance, allowing PMS managers to invest in foreign securities and exchange-traded derivatives.
- •SEBI plans to allow FPIs to participate in physically deliverable non-agricultural commodity derivatives and review its settlement framework to rationalize settlement amounts.
- •Other agenda items include standardizing AIF investor consent, broadening certification requirements, easing call recording norms for research analysts, and a fourth settlement scheme for Illiquid Stock Options matters.
Key Questions Answered
SEBI is considering a comprehensive overhaul of PMS regulations to expand investment choices, lower entry barriers, and ease compliance. Proposed changes include allowing managers to invest in foreign securities, exchange-traded derivatives, and investment-grade unlisted debt, alongside the introduction of a new MF-PMS category with a reduced minimum investment requirement of Rs 25 lakh and lower net-worth criteria.
REITs and publicly listed InvITs could be permitted to issue Depository Receipts backed by their units, enabling them to raise foreign capital through overseas exchanges. Additionally, the board may allow them to invest minority stakes in under-construction third-party projects within existing exposure limits.
SEBI is considering a common advertising code to unify investor-facing communication rules across stock brokers, mutual funds, portfolio managers, and other intermediaries to ensure transparency. The code proposes replacing prior approval for most ads with post-publication reporting within 24 hours via a centralised portal, while restricting celebrity endorsements to brands rather than specific products.
