SEBI’s board approved comprehensive reforms across portfolio management, settlements, REITs, InvITs, FPIs, AIFs, and accredited investors, aiming to boost market depth and compliance efficiency.
SEBI Unveils Major Regulatory Reforms
At its September 2026 meeting, SEBI’s board approved wide-ranging reforms to modernize India’s capital markets. Key decisions include enhanced disclosure norms for Portfolio Management Services (PMS), streamlined settlement mechanisms for institutional trades, eligibility relaxation for Foreign Portfolio Investors (FPIs), and operational flexibility for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The reforms also cover vault managers handling physical securities, stricter monitoring of accredited investors, and updated governance standards for Alternative Investment Funds (AIFs). Notably, SEBI introduced a graded penalty framework for minor violations under its settlement scheme to encourage voluntary compliance.
For legal and compliance departments, the changes require immediate review of client-facing processes and internal controls. The package reflects SEBI’s dual focus on investor protection and market innovation. Given their breadth, these reforms are expected to influence regulatory strategy, investment structuring, and dispute resolution across financial sectors in the coming year.
