SEBI Board To Consider PMS Rule Overhaul, Settlement Reforms This Week

India's Securities and Exchange Board of India (SEBI) is set to consider multiple proposals at its board meeting this week, including a comprehensive overhaul of Portfolio Management Services (PMS) rules and a review of settlement norms.

The regulator is evaluating proposals to broaden PMS investment choices, including allowing managers to invest in foreign securities, unlisted debt, and to-be-listed securities. The framework would also ease entry requirements, simplify reporting, and relax compliance norms for PMS managers.

Other proposals under consideration include widening the accredited investor framework, permitting REITs and InvITs to raise foreign capital through depository receipts, allowing foreign portfolio investors in non-agricultural commodity derivatives, and establishing a common advertising code. Settlement reforms include linking penalty amounts to settlement frameworks and introducing a fast-track route for cases up to Rs 10 lakh.