SEBI proposes to replace the 2020 Portfolio Managers Rules with a comprehensive 2026 regulatory framework covering PRIM, derivatives, compliance relief, and client safeguards.
SEBI Proposes Portfolio Managers Regulations, 2026
On 13 October 2026, SEBI issued a board memorandum proposing the replacement of the SEBI (Portfolio Managers) Regulations, 2020 with a revised regime titled SEBI (Portfolio Managers) Regulations, 2026. The new framework introduces enhanced flexibility in investment mandates, including expanded use of derivatives and Private Investment in Public Equity (PRIM) structures.
Key features include simplified compliance obligations, stricter client eligibility checks, uniform fee disclosure norms, and enhanced reporting for performance and risk metrics. The regulations also strengthen client fund segregation and custodial safeguards, particularly for discretionary mandates.
Practitioners must anticipate changes in authorization applications and client agreement templates. The draft regulations reflect SEBI's intent to balance innovation in wealth management with investor protection, particularly in high-net-worth and institutional portfolios.
Citations
- SEBI (Portfolio Managers) Regulations, 2020 (proposed to be replaced by 2026 version)
