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SEBI Weighs PMS Overhaul, Settlement Reforms and Investor Expansion
India’s market regulator, SEBI, is planning to discuss several rule changes.
The meeting is expected to happen this week.
One major proposal would change how Portfolio Management Services work.
These services might be allowed to offer more types of investments, including some investments outside India.
Managers might also be allowed to put a limited amount of client money into certain unlisted debt.
SEBI may also make some settlement cases faster and simpler.
Another proposal would create common advertising rules for several financial businesses.
These are proposals for consideration, not confirmed decisions.
SEBI is expected to consider about a dozen proposals at its board meeting this week.
The proposed PMS overhaul could permit investments in overseas securities and certain to-be-listed securities.
Discretionary PMS managers may be allowed to invest up to 10% of client assets in investment-grade unlisted debt.
Settlement reforms could link the base settlement amount to the minimum penalty under securities laws and create a fast-track route for cases up to Rs 10 lakh.
Other proposals include a common advertising code and allowing REITs and InvITs to raise foreign capital through depository receipts.
- Who
- The Securities and Exchange Board of India (SEBI).
- What
- SEBI is expected to consider proposals covering PMS rules, settlement procedures, accredited investors, advertising standards and foreign fundraising by REITs and InvITs.
- Where
- New Delhi, India.
- When
- At a board meeting expected this week, as reported on September 23.
- Why
- The proposals aim to broaden investment choices, ease compliance and entry requirements, streamline settlements and establish common rules for financial-sector advertising.
Key facts
- Regulator
- Securities and Exchange Board of India (SEBI)
- Proposals
- About a dozen proposals are expected to be considered.
- PMS changes
- Possible investments include overseas listed equities and debt, overseas mutual funds and certain to-be-listed securities, subject to applicable conditions.
- Unlisted debt limit
- Discretionary PMS managers could be permitted to invest up to 10% of client assets under management in investment-grade unlisted debt.
- Fast-track settlement
- A proposed route would cover cases involving amounts up to Rs 10 lakh.
- Settlement deadline
- The proposed application deadline would increase from 60 days to 90 days.
- Advertising code
- Common advertising norms are proposed for stock brokers, mutual funds, PMS managers, investment advisers, research analysts and other intermediaries.
Sources
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